Pernod Ricard (RI FP) and Diageo (DGE LN) is under investigation by India over scotch imports under the UK trade pact, according to sources

Pernod Ricard (RI FP) and Diageo (DGE LN) is under investigation by India over scotch imports under the UK trade pact, according to sources.

Indian authorities have a long record of scrutinising imported liquor, and the disputes of this kind have historically centred on customs valuation, transfer pricing between parent and local entity, and classification of imported spirits rather than on outright import bans. The channel is duties and back taxes: an adverse finding typically means a liability assessment on past shipments plus higher bonded costs on future ones, not a loss of market access. The trade pact angle matters because reduced tariffs on UK-origin scotch create an incentive question about how imports are valued and routed, and regulators in this position have tended to probe whether declared values reflect the new duty treatment correctly. Both names have deep on-the-ground Indian operations and prior exposure to local tax and excise disputes, episodes of which have tended to run long and resolve in negotiated settlements rather than rulings that close the market. The follow-ons are whether the probe is framed as valuation or classification, whether it extends to other importers, and any quantified demand from the authorities, since that is what converts a procedural investigation into an earnings-relevant liability. For spirits names with India as a growth pillar, the read is reputational and balance-sheet, not structural.