Now India will get cheap Scotch, desi brands will increase difficulty
There is a discussion all around about the free trade deal between India and Britain. The government is calling it a big economic victory, but not everyone is happy with it. Especially in Indian whiskey companies, there is a clear resentment and fear about this deal. The matter is straight, after this agreement, now the expensive Scotch whiskey of Britain will get more cheaper than ever in India. And the same thing is knocking the desi liquor manufacturers.
Now India will get cheap Scotch, desi brands will increase difficulty
According to a report by Sky News, under this deal, India is going to reduce the tax on Scotch Whiskey from 150% to 75%. That is, the whiskey which was in the reach of only the rich, will now be easily available at the common shops and at a low price. Director General Anant S Iyer of Ciabc (Confederation of Indian Alcoholic Beverage Companies) says that this will cause double hit on Indian brands, on one side there is already expensive production and cheap products coming from outside on the other side.
They say, the weather is hot in our country. The whiskey is cooked quickly here, but to say Scotch, it is necessary to keep it in wooden peeps for three years. By keeping so long, one-third of our goods fly in the air. ” That is, the thing that can be ready here in a year, has to be stored for three years.
How will the desi brand stand between cheap scotch?
India is the largest whiskey drinking country in the world, but most of the liquor sold here is indigenous brands. Scotch’s share is just 3%. But now when the scotch is cheaper, people will draw towards it. According to Ciabc, a lot of foreign brands will enter India at cheap prices. This will drop the sales of indigenous companies and weaken the market. It is not just a matter of cost. Companies also fear that the marketing and brand value of foreign brands is more than before. When a well -known Scotch brand is found cheaply, why will the customer choose the desi company?
Even more danger hidden in trade deal
The trade deal is not limited to alcohol just. In many more sectors, India has given Britain entry in the market. But an important issue is Rules of Origin. This means that the product that is coming to India is actually made. If these rules are loose, then other countries can send their cheap items to India through Britain. This can cause huge loss to the local industry. Also, Britain’s carbon tax is also a matter of concern. With this, export of steel and other metal products of India can be expensive. And if India had any problem in the deal, then how will it be settled? Even a clear answer has not come on this.
Government is chanting the rage of increasing export
The government is saying that export will increase, employment will come and foreign investment will also come. But the ground reality is something else. Small and medium businessmen, especially those who make indigenous brands, are feeling insecure with this. In a way, this deal can be beneficial for some big companies, but will create difficulties for small enterprises.
Will the price of the deal repay the domestic business?
It is good to hear the free trade agreement, but when the local business starts getting weaker due to its effect, then there is no benefit. Customers may benefit from cheap scotch, but if indigenous companies start closing at its cost, then this deal can prove to be a loss deal in a long time. The government will now have to see how to give security to Indian industries while giving place to foreign brands, so that the deal is really ‘free and fair’ for both sides.
Also read- Indo-UK Free Trade Deal will have these things cheaper, will directly affect your pocket!