Your glass of Scotch whisky, French wine may get cheaper soon

So, you like your glass of exquisite Scotch at the end of a hard day's work but at the same time you can't help but complain about the spiralling prices of everything including that bottle of imported Scotch you picked up on your way back from work.

Your woes may soon have an answer in the government proposing to cut import duty on spirits and wines to 40 per cent.

According to reports, Commerce and Industry minister Anand Sharma has made an offer to the European Union (EU) as part of a free trade agreement (FTA) to slash the import duty on spirits and wines to 40 per cent from 150 per cent currently.

India also proposed to cut the entry price per bottle of wine to $3.7 (around Rs 217) and whisky to $5.5 (Around Rs 322).

So, if you are a connoisseur of French wine or Scotch whisky, this sure will be music to your ears- notes of Scotland's famous bagpipe if you will.

However, with cheaper imports flooding the market, India's domestic spirits and wines industry is likely to take a hit, as more and more people may move to the imported variety shunning the domestic produce.

Indians are 'high' on Scotch, with the market for arguably Scotland's most popular produce growing at a compound annual growth rate (CAGR) of over 30 per cent.

India imports 16 million litres of scotch whisky annually.

The move by the government is seen benefitting companies like Pernord-Ricard and Diageo India.