UK FTA: Indian Alcoholic Beverage Industry In Low Spirits Over Deal Even As India Inc Calls It Transformative
Without the inclusion of a Minimum Import Price (MIP) and removal of non-tariff barriers, Indian spirits could be vulnerable to dumping, says CIABC Director General Anant S. Iyer.
India Inc has hailed the signing of the India-UK Free Trade Agreement (FTA), calling it a "landmark" and "transformative" step that cements economic ties between New Delhi and London. However, not all sectors are toasting the development – the Indian alcoholic beverage industry has voiced concerns over being overlooked in the deal.
India Inc Over The Moon
Leading industry bodies such as the Federation of Indian Chambers of Commerce and Industry (FICCI), Confederation of Indian Industry (CII), and Nasscom welcomed the FTA, which is also accompanied by the Double Contribution Convention – an agreement that exempts Indian workers in the UK from dual social security contributions.
FICCI described the agreement as a "pathbreaking" achievement amid a globally uncertain trade environment. "The India-UK FTA underscores the need for enhanced trade and investment opportunities. It is heartening that key asks like greater market access and social security exemptions were considered," said FICCI President Subhrakant Panda. The agreement is expected to significantly boost bilateral trade, currently pegged at over $50 billion.
Nasscom, representing India’s IT sector, praised the deal for focusing on digitally delivered and professional services, adding that it would enhance cross-border innovation and employment. "This is a historic agreement that supports high-quality jobs, eases mobility, and removes long-standing regulatory hurdles," said the industry body, while highlighting that exemptions from social security contributions will benefit Indian tech companies operating in the UK.
CII President Sanjiv Puri called the agreement "transformative", adding that it advances the shared 2030 roadmap to elevate bilateral trade to $100 billion. "This FTA will bolster technology collaboration and diversify global supply chains," he said.
The automotive sector also greeted the deal positively. The Automotive Component Manufacturers Association (ACMA) welcomed the new trade chapter, expressing optimism about technology partnerships and improved market access. JATO Dynamics’ Ravi Bhatia said companies like Tata Motors and Mahindra stand to benefit due to reduced tariffs on EVs and auto components, though he cautioned that UK imports may increase competition.
TVS Motor’s MD, Sudarshan Venu, emphasised the potential for market expansion, especially as its British brand Norton prepares for launch. “This agreement allows us to scale faster and leverage shared supply chains,” he noted.
Bharti Airtel Chairman Sunil Bharti also lauded the India-UK FTA, saying that the two countries represent a "burgeoning wealth" of ideas, talents and resources. "This is not only a pivotal milestone in the history of the relations between our two great nations but one that promises to be the gateway to an era of flourishing bilateral cooperation, shared innovation and enhanced people to people connects," he added.
Alcobev Industry Feel Sour
Meanwhile, the Confederation of Indian Alcoholic Beverage Companies (CIABC) expressed disappointment. “The government has not fully heeded the pleas of the Indian Alcobev industry,” said CIABC Director General Anant S. Iyer.
He warned that without the inclusion of a Minimum Import Price (MIP) and removal of non-tariff barriers, Indian spirits could be vulnerable to dumping.
“If similar templates are followed in FTAs with the EU and US, the Indian wine and spirits industry could be adversely impacted,” Iyer cautioned, urging the government to address excise duty disparities that favor imported liquor in several Indian states.
He added that without proper international market access, the government’s $1 billion export target for the Alcobev sector by 2030 would be difficult to achieve.
