Scotch sector celebrates ‘historic’ UK-India trade deal
The UK government believes beverage and tobacco exports to India could increase by approximately £700 million (US$942.3m) now that the nations have ratified their ‘historic’ trade deal – which has been welcomed by the Scotch whisky industry.
UK prime minister Keir Starmer and Indian prime minister Narendra Modi described Thursday (24 July) as a “historic day”, as they met in the UK and signed the trade agreement between their countries.
The deal is forecast to boost the UK economy by £4.8 billion (US$6.45bn) a year and bring in £6bn (US$8.08bn) of investment for British and Indian businesses.
The trade deal is significant for Scotch whisky, which will benefit from a reduction in the 150% import tariffs it has faced in India for years.
Scotch whisky and British gin will initially see tariffs halved from 150% to 75%. Further reductions will take place over the next few years, eventually dropping to 40% in 10 years.
Mark Kent, chief executive of the Scotch Whisky Association, said: “The Scotch whisky industry has long championed a free trade agreement between the UK and India.
“The signing of the FTA is an historic moment and an important milestone to reducing tariffs on Scotch whisky in a growing market. This will contribute to the government’s growth objective, by laying the foundations for further investment and jobs.
“The FTA will bring long-term benefits for the industry, but the industry needs immediate support in order to realise the deal’s full potential.
“Distillers, especially smaller ones, are under significant pressure now – including as a result of tariffs in the US and a growing tax burden in the UK.
“Action by the UK government to alleviate these pressures will ensure distillers are in the best position to take advantage of the UK-India FTA once it comes into force.”
The CEO of Chivas Brothers, the Scotch whisky arm of Pernod Ricard, also welcomed the agreement and the impact it will have on Scotch.
Jean-Etienne Gourgues, CEO at Chivas Brothers, said: “The signing of the UK-India free trade agreement marks a significant step forward for the Scotch whisky industry.
“Once ratified by the UK and Indian governments, this deal will unlock one of the world’s biggest whisky markets and enable us to open Chivas Brothers’ Scotch whiskies up to a wider range of Indian consumers seeking premium, world-class spirits.
“The deal will support long-term investment and jobs in our distilleries in Speyside and our bottling plant at Kilmalid and help deliver growth in both Scotland and India over the next decade. It’s clear that the future of Scotch is global, and we believe India will be a key partner in that journey.”
Related news
Inside the ‘spiritual home’ of Scotch
