The Scotch Whisky Association and producers in the UK have joined Prime Minister Keir Starmer's trade mission to India. The industry has come into the the spotlight as a "big winner" of the India-UK Free Trade Agreement (FTA), which the UK government expects will grow the Scottish economy by 190 million pounds a year.
Indian import tariffs on Scotch are set to be slashed, which has the potential increase sales to GBP 1 billion a year in the world's largest whisky market.
The British delegation's trip will include key meetings with senior Indian government ministers and businesses, to deepen the trade and diplomatic relationships between Scotland and India, according to the UK Foreign Office.
SWA Chief Executive @markagkent has joined PM @Keir_Starmer, SoS for Scotland @D_G_Alexander & SoS for Business and Trade @peterkyle on a trade mission to India this week, following the landmark UK-India FTA announced earlier this year 🇮🇳 🥃 🏴 pic.twitter.com/g74U14uwl5
October 8, 2025Advertisement"The historic trade deal the UK Government struck with India this year is great news for Scotland and especially our whisky industry," said UK Secretary of State for Scotland Douglas Alexander. "But, having secured the deal, our challenge and responsibility now is to put this deal into action. That requires implementation of the deal by the governments of India and the UK, and the utilisation of the deal by British and Indian businesses."
Scotch whisky is among the products to see Indian import tariffs considerably slashed once the FTA, known as the India-UK Comprehensive Economic and Trade Agreement (CETA), completes its British Parliament ratification process next year.
While customs duties on imported spirits will fall in phases, with tariffs on premium Scotch falling from 150% to 75%, then 40% over the next decade, how much cheaper the bottles get depends largely on Indian states' excise and pricing policies.
AdvertisementInterestingly, the FTA can trigger a shift in the production of these bottled-in-India whiskies back to the UK. With better economies of scale and automated processes, UK-based manufacturing may now be more cost-effective, potentially altering supply-chain decisions by producers.
The UK government is keen to highlight that the benefits of the “landmark” CETA agreement reached during PM Narendra Modi's UK visit in July will boost economic growth across all parts of the country, boosting export opportunities for other iconic Scottish products such as shortbread and popular fizzy drink Irn Bru as well.
"Delivering liberalised tariffs on all our exports to India will open up access to the world's largest whisky market in the years to come and give greater choice to Indian consumers," said Mark Kent, chief executive at the Scotch Whisky Association.
The UK projects the agreement will increase bilateral trade with India by GBP 25.5 billion pounds, hike UK GDP by GBP 4.8 billion, and boost wages.
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