Beer Prices to Drop in India? Here’s the Truth Behind the 75% Tax Cut and the Viral ₹50 Beer Claim
Beer Prices to Drop in India? Here's the Truth Behind the 75% Tax Cut and the Viral ₹50 Beer Claim
Amid ongoing global tensions and economic shifts, a buzz has been brewing among beer enthusiasts in India. A new Free Trade Agreement (FTA) between India and the United Kingdom has sparked hope among consumers that imported British beers might become significantly cheaper. But are the viral claims of beer worth ₹200 now selling for just ₹50 actually true? Here’s what we found. According to the circulating message, India has reduced taxes on British beer imports by a massive 75%, potentially bringing the price of a ₹200 bottle down to just ₹50.
The message, spreading rapidly online, states: “There’s good news for those who enjoy a cold beer—what used to cost ₹200 could now be sold at ₹50, thanks to the Indian government slashing taxes on British beer by 75%.” This claim has led to widespread excitement, with many already celebrating what they believe is a major price drop in imported beer.
On May 6, 2025, India and the United Kingdom officially signed a Free Trade Agreement aimed at strengthening economic ties between the two nations. A key part of this agreement includes a 75% reduction in import duties on alcoholic beverages imported from the UK—this includes British beer and whisky.
Before the agreement, these imported liquors were subject to import taxes as high as 150%. The new deal significantly cuts these duties, which theoretically should make UK-based alcoholic drinks cheaper in India. However, there are several critical factors that determine whether or not this will translate into actual price drops for consumers.
Why the ₹50 Beer Claim Is Misleading
Despite the 75% tax reduction on imports, industry experts explain that the viral claim of a ₹200 beer dropping to ₹50 is largely exaggerated. One of the main reasons is that alcohol taxation in India is a state subject. This means that each state has the power to impose its own taxes, duties, and pricing rules on alcoholic beverages, regardless of central government policies or international trade deals.
Additionally, the Indian beer industry relies heavily on domestic bottling and distribution. Most beer consumed in India is either produced locally or imported in bulk and bottled within the country. This means that imported British beers, even with lower duties, still go through layers of cost additions—such as state excise duties, distribution margins, and retail pricing.
Experts noted that while the tax relief may lead to some marginal reduction in the price of imported liquors—especially premium whisky brands from the UK—it is highly unlikely that beer prices will see such a dramatic drop as claimed in the viral message.
What to Expect Moving Forward?
While the FTA is certainly a positive development for trade and could lead to some price reductions in the high-end segment of imported alcohol, the chances of mainstream imported beer being sold for ₹50 are minimal. The agreement may benefit select consumers who prefer specific UK brands, especially in metropolitan markets where imported goods are more widely available.
To sum it up: yes, India and the UK have signed a Free Trade Agreement that includes a 75% reduction in import duties on alcoholic beverages. But no, this does not mean that your ₹200 beer will now cost ₹50. Due to state-level taxes and the structure of the Indian liquor industry, any impact on prices will likely be limited and far less dramatic than social media posts suggest.
