India has overtaken France to change into the UK’s largest market of Scotch whisky by way of quantity with a 60 per cent hike in imports in 2022 over the earlier yr, in response to figures from Scotland’s main business physique.

The Scotch Whisky Affiliation (SWA) stated that India imported 219 million 70cl bottles of Scotch in comparison with France’s 205 million final yr – representing progress of the Indian Scotch market of greater than 200 per cent prior to now decade.

As one of many key sectors of focus for the UK within the free commerce settlement (FTA) talks with India, now of their seventh spherical of negotiations, SWA identified that the hike in quantity nonetheless makes up solely a fraction of the Indian whisky market because of excessive tariffs.

“Regardless of double-digit progress, Scotch whisky nonetheless solely includes 2 per cent of the Indian whisky market,” the affiliation stated on Friday.

“SWA evaluation reveals {that a} UK-India FTA deal which eases the 150 per cent tariff burden on Scotch whisky in India may increase market entry for Scotland’s whisky firms, permitting for an extra GBP 1 billion of progress over the following 5 years,” it famous.

The worth of the Indian marketplace for Scotch exports is available in at fifth price GBP 282 million, up 93 per cent in 2021 and behind France, Singapore and Taiwan. The 2022 pattern additionally noticed the Asia-Pacific area overtake the European Union (EU) because the business’s largest regional market, with double-digit post-pandemic progress additionally seen in Taiwan, Singapore and China apart from India.

“Throughout a yr of great financial headwinds and international provide chain disruption, the Scotch Whisky business continued to be an anchor of progress, supporting funding and job creation throughout Scotland and the UK,” stated SWA Chief Govt Mark Kent.

“By decreasing tariffs by means of the UK-India free commerce settlement, persevering with the responsibility freeze within the March price range, and making certain the business’s continued means to promote our world-class product in our residence market, the Scottish and UK governments can depend on the Scotch Whisky business to reinvest its success throughout the UK,” he stated.

General, the yr 2022 noticed strong progress in Scotch exports around the globe, with the US holding on to its topmost place as the biggest market by worth at GBP 1,053 million.

The overall export worth of Scotch whisky – one of many UK’s greatest exporters – was up 37 per cent by worth to GBP 6.2 billion.

UK Commerce Minister Nigel Huddleston stated: “Scotch whisky is likely one of the UK’s nice exporting success tales, contributing billions of kilos to the financial system and supporting hundreds of jobs, so I’m happy to see these export figures displaying a rising international demand.

“It’s important we proceed to help the business because it expands into new markets because of our new commerce agreements around the globe resembling CPTPP [Comprehensive and Progressive Agreement for Trans-Pacific Partnership] and in India. As we set our sights on GBP 1 trillion exports by 2030, I’m assured we are able to see Scotch whisky go from energy to energy within the years forward.”

In accordance with SWA information, on common the equal of 53 bottles of Scotch Whisky are exported each second — up from 44 per second in 2021. Bottled Blended Scotch Whisky accounts for 59 per cent of worth exports, with Single Malt 32 per cent of all Scotch whisky exports by worth.

“The whisky business alone employs 11,000 individuals straight in Scotland, over 7,000 of whom work in rural areas and an extra 42,000 jobs throughout the UK. We’ll proceed to have interaction with and hearken to the whisky business to grasp how we are able to enhance export alternatives and take away obstacles to commerce,” added Mairi Gougeon, Scottish authorities’s Rural Affairs and Islands Cupboard Secretary.