Whisky Tariffs Slashed in Landmark UK-India Trade Deal
In a bold stride towards bolstering trade relations, whisky tariffs on exports to India are set to be dramatically reduced following a major agreement between the UK and India.
The trade pact, finalised during Prime Minister Narendra Modi’s official visit to the UK on Thursday, was signed alongside Labour leader Sir Keir Starmer. The move is being hailed as a game-changer for the Scotch whisky industry.
Under the agreement, India’s hefty 150% tariff on whisky will be immediately slashed to 75%. Even more promising, there’s potential for it to fall further to just 40% within the next ten years — a significant opening for one of Scotland’s most prized exports.
But it’s not just whisky seeing relief. Tariffs on soft drinks, currently sitting at 33%, will be phased out entirely, reaching 0% over time.
Scottish Secretary Ian Murray called the development “great news for Scotland and Scottish jobs,” stressing the broader benefits: “goods, businesses and services gaining access to what is projected to be the world’s third-largest economy by 2027”.
The UK Government anticipates the deal could deliver a £190 million boost to Scotland alone, a much-needed win for the nation’s economy.
The Scotch whisky sector has long lobbied for this change. Mark Kent, Chief Executive of the Scotch Whisky Association, said: “The signing of the FTA is a historic moment and is an important milestone to reducing tariffs on Scotch whisky in a growing market.”
“This will contribute to the Government’s growth objective by laying the foundations for further investment and jobs,” he added.
The Indian whisky market is vast and rapidly expanding, with a rising middle class showing an increasing appetite for premium international spirits. For Scottish distillers, this agreement could open the floodgates to new growth and investment opportunities in one of the world’s most dynamic markets.
Industry insiders say the reduction in tariffs could make Scotch significantly more competitive in India, where it has long been a luxury for the few due to high import duties.
Though the full benefits will take time to materialise, the signal is clear, the UK is positioning itself as a key trade partner with India in the post-Brexit era. And for Scotland’s whisky makers, this could be the beginning of a golden decade.
