New Delhi, July 24 -- A landmark free trade agreement (FTA) signed between India and the UK is set to shake up the Indian alco-bev market, slashing steep import duties on whisky and gin and opening the doors wider for premium foreign spirits. Industry leaders say the move could accelerate premiumization, benefit both global and Indian liquor companies, and reshape consumer choices in the world's largest whisky market.

Once the agreement comes into force, customs duty on imported whisky and gin from the UK will be halved from 150% to 75% immediately and then gradually reduced to 40% over the next decade. The revised duties will apply to both bottled-in-origin (BIO) and bulk imports.

BIO spirits are entirely produced and bottled outside I...