India assures commitment to lower Scotch tariffs in India-UK pact, sources say
EXCLUSIVE-India assures commitment to lower Scotch tariffs in India-UK pact, sources say By Aditya Kalra and Shivangi Acharya
NEW DELHI, Nov 2 (Reuters) - India’s government on Monday assured liquor companies it will honour the India-UK trade pact and settle a dispute over Scotch tariffs, easing concerns that have rattled the $65 billion industry and players like Pernod and Diageo, five people with direct knowledge said.
In the first major dispute linked to a historic India-UK trade pact implemented in July, New Delhi in recent weeks started investigating major companies and told them that bulk Scotch imports are not eligible for the tariff reduction to 75% from 150% agreed in the deal, Reuters has reported.
"We are potentially moving towards a resolution. Bulk scotch whisky imports are indeed part of concessions under the trade deal," said one of the sources, while describing New Delhi's thinking in a closed door meeting with industry on Monday.
India's commerce ministry did not immediately respond to Reuters queries.
(Reporting by Aditya Kalra, Editing by Louise Heavens)
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