An agreement has been reached between India and the UK that will see the rate of tariffs on spirits exports from the latter to the former halved.
The deal, announced today (6 May), will see the rate of duty on scotch whisky cut from the current level of 150% to 75%. In ten years’ time, the rate will decrease further, to 40%.
Described by the category’s trade association as a “once-in-a-generation deal and a landmark moment”, the agreement could quintuple the value of scotch exports to the country within five years.
“The reduction of the current 150% tariff on scotch whisky will be transformational for the industry,” said the chief executive of the Scotch Whisky Association, Mark Kent. “The deal has the potential to increase scotch whisky exports to India by GBP1bn (US$1.33bn) over the next five years and create 1,200 jobs across the UK.”
Figures from the SWA in February showed the value of exports to India in 2024 totalled just under GBP250m.
Today’s news also drew appreciation from Johnnie Walker brand owner Diageo. Group CEO Debra Crew echoed Kent’s comments, noting also that the move would “increase [the] quality and choice for discerning consumers across India”.
The likelihood of securing a trade agreement with India has long been the wish of UK authorities and had been framed as a potential ‘Brexit benefit’ in the run-up to the country’s vote in 2016 on whether to leave the European Union.
