Apparently, just 1 percent of the estimated billion litres of whiskey consumed in India is produced outside of the country. Mr Vijay Mallya, who bought Whyte & Mackay for £595 million in 2006, controls about 60 per cent of the Indian whisky market. He accused the SWA of being "paranoid" about India and gave warning that the body's "heavy handed" approach could jeopardise Scottish distilleries' prospects in the country.

Furthermore, as the article reported, India is set to triple its wine consumption in the next three years adding about 188,000 hectolitres according to The International Wine and Spirits Record (IWSR). The number of foreign residents, tourism and the rising middle class are all driving this consumption. But as the article added, only 25 percent of the wine consumed in India is imported as the domestic vintages enjoy the protection of foreign duties. Per capita consumption of wine in India languishing at about 9 ml, compared with 400 ml in China. As a result, foreign producers around the world are eying the Indian market.

Susan Schwab, the US Trade Representative has complained about the duties in the past and recently noted that at duty-free shops, where Indian duties do not apply, US exports for wine grew 350 per cent from 2000 to 2005.