30 per cent jump in Scotch whisky export to India.

LONDON: Despite high import tariff, Scotch whisky exports to India recorded an impressive 30 per cent increase in 2011 by volume compared to 2010, according to latest figures from the Scotch Whisky Association (SWA).

The Scotch whisky industry has been lobbying for reduction of high import tariff in India.

SWA officials hope that the free trade agreement between the European Union and India, likely to be signed this year, will help drive exports further.

During 2011 (January to December), 15.7 million litres of Scotch whisky were exported to India, compared to 12.1 million litres in 2010, representing a hike of 30 per cent, according to SWA figures.

Stating that the large India market was a priority for the industry, Gavin Hewitt, SWA chief executive, said: "Securing fair market access and reducing tariffs is a priority for the industry."

A Free Trade Agreement (FTA) between the European Union and South Korea came into force in July.

He added: "India is a priority for this year. We are hopeful a FTA can be signed which will lead to a reduction in the onerous 150 per cent import tariff. The industry in investing in Scotland to ensure it can seize these overseas opportunities."

In the last four years, the Scotch whisky industry has invested over one billion pounds to enlarge capacity in distilleries and meet growing demand in emerging and more mature markets such as the United States and France.

Scotch whisky exports continued to grow last year hitting a record 4.2 billion pounds in shipment value, up 23 per cent on 2010 according to SWA figures.

Export values increased by an average of 10 per cent a year over the last five years.

Scotch whisky exports now contribute 134 pounds per second to the UK balance of trade.

Exports to the USA, the biggest market by value, broke the 600 million pounds barrier for the first time in 2011 to reach 654.9 million pounds, which was up 31 per cent on 2010.

France, the second biggest market, saw exports grow by 27 per cent to 535.4 million pounds.

SWA said that affluent young professionals in fast growing economies were increasingly developing a taste for Scotch whisky, which was contributing to growth in countries across Asia and Latin America.

Direct exports to Singapore, which serves as a distribution hub for much of Asia, rose by 44 per cent to 317.9 million pounds. Taiwan saw an increase of 44 per cent to 155.2 million pounds.

Source : economictimes.indiatimes.com