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As of 2006 most distilled spirits labelled as "whisky" in India were a form of Indian-made foreign liquor, commonly blends based on neutral spirits that are distilled from fermented molasses with only a small portion consisting of traditional malt whisky, usually about 10 to 12 percent. Outside India, such a drink would more likely be labelled a rum.
According to the Scotch Whisky Association's 2013 annual report, unlike in the European Union (EU), "there is no compulsory definition of whisky in India, and the Indian voluntary standard does not require whisky to be distilled from cereals or to be matured. Very little Indian 'whisky' qualifies as whisky in the EU owing to the use of molasses or neutral alcohol, limited maturation (if any) and the use of flavourings. Such spirits are, of course, considerably cheaper to produce than genuine whisky."Such molasses-based blends made up 90 percent of the spirits consumed as "whisky" in India in 2004, although whisky wholly distilled from malt and other grains, was also manufactured and sold. By 2004 shortages of wheat had been overcome and India was one of the largest producers. Amrut, the first single malt whisky produced in India, was launched in Glasgow, Scotland in 2004. After expanding in Europe it was launched in India in 2010.
An advertisement for Bagpiper whisky on a building in Pondicherry
By 2022 India produced many whiskies both for the local market-the most lucrative market for whisky in the world-and export. Indian single malts comprised 15% of the local market in 2017, increasing to 33% in 2022. In the three years to 2022 sales of Indian malts increased by an annual average of 42%, compared with 7% for imported rivals.