India's proposed trade agreements with the European Union and the United Kingdom include a gradual reduction in basic customs tax on alcoholic beverages, as well as removal of non-tariff barriers such as recipe standards and maturation requirements in those nations. Indian Alcoholic Beverage Companies Confederation (CIABC) recommends Commerce and Industry Ministry progressively cut customs charges from the existing 150 percent to 50-75 percent over a period of a decade. In the FY22 budget, India cut the BCD to 50%, but the government imposed an Agriculture Infrastructure Development Cess of 100%, keeping the entire tariff level at 150%. "We're not opposed to lowering duties. Vinod Giri, Director General of the CIABC, said, "We support it and want it to be progressive so that enterprises may prepare themselves." Radico Khaitan NSE 2.33%, Mohan Meakin, and Amrut Distilleries are among the members of the industry association.

New Delhi has sought out stakeholders on the proposed India-UK Enhanced Trade Partnership, which had been blocked since 2013 because of disagreements over many matters, including the duty on vehicles and alcohol. Exports to the United Kingdom account for only 0.2% of India's overall alcohol exports, while imports from the United Kingdom account for 24% of India's total alcohol imports.

Non-tariff obstacles pose a "major hurdle" to India's exports to the European Union and the United Kingdom, according to Giri. As a result, Indian companies are unable to meet the demand for grain-based spirits, which they cannot produce because of their country's large sugar production. India's Whisky Association of Canada (CIABC) has lobbied to enable Indian whiskies to be sold in the UK as whiskies regardless of whether they are derived from malt, grain spirits, or molasses-based spirits. The third hurdle is the rule that the whiskey must have been aged for three years before it can be sold.

As a result, evaporation loss is greater in hot climates like ours." It should be clearly stated on the label," Giri said, adding that the industry has called for a trade-off in bilateral negotiations.

Alcoholic beverage exports from India totaled 73 million cases in FY20, of which only 30,000 cases were sold to the UK and the EU. To prevent dumping and price gouging, the industry has also requested a minimum price for whiskey imports.