Spirits producers in the UK have effusively welcomed today’s implementation of the country’s free trade agreement (FTA) with India that will see the rate of duty reduced markedly on exports of UK spirits to India, including scotch whisky.
The deal, first announced in May last year, will see the current duty rate of 150% on the likes of scotch halved to 75% as of today. In 2036, the rate will be cut further, to 40%.
For imports into the UK from India, meanwhile, virtually all of the country’s spirits will be at 0% duty.
Pernod Ricard, which owns the Beefeater gin and Chivas Regal scotch brands, described the implementation as a “significant opportunity” for the country, and “a welcome boost for the scotch whisky industry”.
Mark Kent, the CEO of the Scotch Whisky Association – seen below in a LinkedIn post by the Indian embassy in London – added: “A boost to exports, jobs and investment in both the UK and India are among the key long term benefits of the FTA, which is a positive development for the sector amid a challenging few years that has seen scotch whisky face international volatility and rising costs and regulation here at home.”
Elsewhere, a spokesperson for Diageo, home to blended scotch Johnnie Walker, described the deal as a “landmark treaty” that “will enable improved accessibility and choice of scotch for the Indian consumers, the largest and most exciting whisky market”.
The SWA estimates the deal has the potential to increase exports of scotch to India by GBP1bn (US$1.34bn) over the next five years.
Annual figures released by the SWA in February showed the value of exports to India in 2025 totalled just under GBP286m (US$382.6m) – an increase on 2024’s GBP248m.
