India on Tuesday finalised the ambitious free trade agreement with the United Kingdom. Prime Minister Narendra Modi announced the development via a post on X. The United Kingdom will be the 16th country with which India has entered an FTA. Lauding the development as a ‘historic milestone,’ PM Modi said that the deal will boost jobs creation and will be mutually beneficial for both nations.
Under the deal, duties on gin and imported whiskey will be slashed to 75 percent. This means that several major imported whiskey brands will cost a much cheaper in India. The top brands that will see a price cut include Black Label, Chivas Regal, Johnnie Walker and The Glenlivet. These British whiskies will see lower tariffs in the tenth year of the deal.
"The UK-India free trade agreement is a once in a generation deal and a landmark moment for #ScotchWhisky exports"Read our response to @biztradegovuk's UK-India FTA announcement & what it means for https://t.co/ldrRSdkqB1 pic.twitter.com/592wjrv4N4
Scotch Whisky Association (@ScotchWhiskySWA) May 6, 2025
“The UK-India free trade agreement is a once in a generation deal and a landmark moment for Scotch Whisky to the world’s largest whisky market,” said Mark Kent, Chief Executive of the Scotch Whisky Association.
“The reduction of the current 150% tariff on Scotch Whisky will be transformational for the industry. The deal has the potential to increase Scotch Whisky exports to India by £1bn over the next 5 years and create 1200 jobs across the UK. The deal is good for India too, boosting federal and state revenue by over £3bn annually, and giving discerning consumers in a highly educated whisky market far greater choice from SME Scotch Whisky producers who will now have the opportunity to enter the market,” Kent added.
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