Indian whisky is a distilled alcoholic beverage that is labelled as "whisky" in India. Much Indian whisky is based on spirits that are distilled from fermented molasses. Outside of India, such a drink would more likely be labelled a rum (some brands can be about 12% malt whisky, with the rest fermented molasses).[1][2]
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The drinking of Scotch whisky was introduced into India during the nineteenth century, during the period of the British Raj. Scotch style whisky is the most popular sort of distilled alcoholic beverage in India, though India has traditionally been thought to lack a domestic drinking culture, with the exception of Rajputs and Jats. Although India now has a high level of alcohol consumption, even to the point where the government has called for mandatory "dry weekends" where alcohol is not purchasable in any market in New Delhi.[3] Whisky, however, has become fashionable for wealthier Indians, and as such the market for whisky among affluent Indians is one of the largest in the world.[4]
90% of the "whisky" consumed in India is molasses based,[5] although India has begun to distil whisky from malt and other grains.[6] Brand names of Indian molasses whisky, including "Bagpiper", "McDowell's No. 1",[7] and the partially malt based "MaQintosh"[8] suggest that the inspiration behind the Indian whiskies is Scotch whisky, despite these products being chiefly made from molasses.
The consumption of native distilled molasses based whisky in India is encouraged by tariff barriers that impose a significant markup of up to 52.5% on imported whiskies in India.[9] Imported Scotch whisky bottled under its own brand makes up only 1% of the total market share. The substantial tax markup on imported whiskies has been categorized by the Scotch Whisky Association as "pure protectionism".[10]
Under Vijay Mallya's direction, United Breweries has been acquiring a number of noted whisky brands and distilleries in Scotland, including Dalmore, Isle of Jura, and Whyte & Mackay.[11] United Breweries has been increasing production at its Scottish facilities, and has moved to double the production of whisky at Invergordon. Some of the Scotch whisky so produced is used to blend with the Indian molasses whisky.[10]
Indian distillers, by contrast, accuse the European Community of erecting its own sort of trade barriers by means of rules that forbid the marketing of molasses based spirits as "whisky". Mallya has objected to the EC's refusal of entry to molasses based whiskies, claiming that the "imposition of British imperialism is unacceptable".[12] In a lawsuit brought in India by the Scotch Whisky Association, the Delhi High Court enjoined Indian whisky manufacturers from labelling their product with the words "Scot" or "Scotch".[13]