NEWS
INDIA AND UK AGREED ON FREE TRADE DEAL THAT WILL CUT 110% TARIFFS ON SCOTCH & GIN
By Susan Lewis
7-5-2025
Source: Doubao
India and UK have eventually agreed on a free trade agreement which will initially halve the Indian tariff on Scotch and British gin to 75 percent from 150 percent before falling to 40 percent by the tenth year of the deal.
It is expected that the provisions of the pact will come into force within the next 12 months.
The deal will benefit the British spirits sector, which has seen global demand sliding and widespread down trading by consumers anxious about inflation and the state of global trade.
Mark Kent, the chief executive of the Scotch Whisky Association, said it was “a once-in-a-generation deal and a landmark moment for Scotch whisky exports to the world’s largest whisky market”.
“The reduction of the current 150 percent tariff on Scotch whisky will be transformational for the industry and has the potential to increase scotch whisky exports to India by £1billion (USD1.33b) over the next five years, creating 1,200 jobs across the UK.”
The deal will benefit the British spirits sector, which has seen global demand sliding and widespread down trading by consumers anxious about inflation and the state of global trade.
Chief Executive of Diageo, the biggest Scotch distiller, Debra Crew said: “Today’s agreement is a huge achievement by Prime Ministers Modi and Starmer and Ministers Goyal and Reynolds, and all of us at Diageo toast their success.”
“It will be transformational for Scotch and Scotland, while powering jobs and investment in both India and the UK. The deal will also increase quality and choice for discerning consumers across India, the world’s largest and most exciting whisky market,” she added.
As the world’s most populated country with of 1.4b people, India’s alcoholic drinks market is estimated at around USD52.5b, which is projected to expand to USD64b by 2028.
The growth is driven by a young, expanding middle class, increasing disposable incomes, and evolving lifestyle choices, with imported brands becoming increasingly desirable.
India is the world’s largest consumer of whisky and ranks among the top markets globally for rum and brandy.
(the writer can be contacted at: info@thewinechronicle.com)
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