Beer Price Cut: British Beer Could Drop to ₹50 Under India-UK Trade Deal
India’s beer market is bracing for a potential shakeup as the India-UK Free Trade Agreement, set to launch within three months, promises steep price cuts for imported British beers. Under the deal, import duties on alcoholic beverages from the UK will be slashed from 150% to 75%, potentially reducing the price of a ₹200 beer to as low as ₹50—a 75% reduction.
Popular British brands like Brewdog, Thaxton Old Peculiar, and Vocation, currently limited to premium venues in major cities, could become far more accessible. However, the final retail price will hinge on state-level alcohol taxes, which vary widely across India and could offset some of the duty savings. For example, if states raise local levies, the ₹50 price point may remain out of reach for consumers in certain regions.
The agreement also impacts other sectors, such as Scotch whisky (facing the same duty reduction) and automotive and textile trade. While British cars may become cheaper in India, and Indian garments face lower tariffs in the UK, beer lovers are focused on the potential affordability of imported brews.
Domestic giants like United Breweries’ Kingfisher, along with international players like Budweiser and Heineken, currently dominate the market. The arrival of more affordable British beers could intensify competition, offering consumers broader choices—provided state policies align with the central trade deal’s goals.
Industry analysts note that while the tariff cut is a significant step, the fragmented nature of India’s alcohol taxation system means price consistency across the country remains uncertain. Nevertheless, the prospect of premium British beers at budget-friendly prices has sparked anticipation among consumers and retailers alike.
Related Topics
