India and the UK have signed a long-awaited trade deal, cutting tariffs on whisky, gin and soft drinks entering India.
Whisky and gin tariffs will be halved to 75% from 150%, later falling to 40% by “year ten” of the deal, the UK’s Department of Business and Trade said in a statement today (6 May).
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Soft drinks exports from the UK will face no tariffs, and the deal will improve access to ingredients made in India, according to the UK’s Food and Drink Federation (FDF).
“By striking a new trade deal with the fastest-growing economy in the world, we are delivering billions for the UK economy and wages every year and unlocking growth in every corner of the country, from advanced manufacturing in the north-east to whisky distilleries in Scotland,” said UK Business and Trade Secretary Jonathan Reynolds.
India Prime Minister Narendra Modi called the “ambitious and mutually beneficial” trade agreement a “historic milestone.”
“This is very welcome news for UK food and drink manufacturers, particularly for soft drinks, chocolates, biscuits, crispbreads and crackers, which will now all benefit from tariff-free access to one of the fastest growing markets in the world. The UK exported nearly £300m ($400m) worth of food and drink to India in 2024, so this free trade agreement represents a significant opportunity for British food and soft drinks,” FDF chief executive Karen Betts said.
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By GlobalDataScotch Whisky Association chief executive Mark Kent said: “The UK-India free trade agreement is a once in a generation deal and a landmark moment for Scotch whisky exports to the world’s largest whisky market. It shows that the UK government is making significant progress towards achieving its growth mission, and the Scotch whisky industry looks forward to working with the UK and Indian governments in the months ahead to implement the deal, which would be a big boost to two major global economies during turbulent times.”
According to the SWA, India is the largest export market by volume for Scotch whisky, with the equivalent of more than 192 million bottles exported there in 2024, up 14.6% on a year earlier.
When looking at the value of Scotch whisky exports, India ranked fifth in 2024. Some £248m of Scotch whisky exports were sent to India last year, 13.8% higher than in 2023.
Kent added Scotch whisky exports could see increase steeply. The deal “will be transformational for the industry and has the potential to increase Scotch whisky exports to India by £1bn over the next 5 years, creating 1,200 jobs across the UK. It will also give discerning consumers in India far greater choice of brands.”
Debra Crew, the chief executive of Johnnie Walker owner Diageo, said: “It will be transformational for Scotch and Scotland, while powering jobs and investment in both India and the UK.” She described India as “the world’s largest and most exciting whisky market.”
