The demand for Indian spirits is growing globally, with exports rising 30% year-on-year in the first 8 months of the current financial year. As export promotion continues on part of the Union Government, the definition of what classifies as "scotch" whisky continues to remain a sticking point.
While whisky that takes 3 years to mature in Scotland, takes just 1 year to mature in India due to its warmer climate. Indian whisky doesn't get classified as "scotch" in many global jurisdictions, though the Indian industry feels it should be given parity in treatment for making the same set of products.
Rajesh Aggarwal, Additional Secretary with India's Department of Commerce, told CNBC-TV18 that India is trying to leverage market access for Indian spirits in the Free Trade Agreements. It is currently negotiating with the European Union (EU) and the United Kingdom (UK).
While he said that Indian brands are finding markets based on their intrinsic taste, brand & value proposition they offer, he pointed out that many countries have marketed their respective spirits using their own brand names.
He cited example of Japan, which doesn't term its whisky as "scotch", rather describes it as Japanese whisky while marketing it worldwide. Stating that Indian brands are already achieving good value realization across geographies, Aggarwal said that the proposition is being looked at whether Indian spirits should have their own brand or they should try to become a part of a global brand.