FINALLY! We have some good news for whisky.
Slashed tariffs, a billion-pound boost, and a foot firmly in the world’s biggest whisky market. Things are looking up.
India and UK reach landmark deal
In news revealed this afternoon, the UK has signed a free trade agreement with India that has wide-reaching consequences for a range of products from cars and cosmetics to gin and Scotch whisky.
This move has been described as a landmark moment, and for once, that’s not just political chest-thumping.
Here’s the headlines:
- Tariffs on whisky exports are set to be halved from a punishing 150% to 75%.
- They are then going to be reduced to 40% over the next decade
That means the world’s biggest whisky market and Scotch whisky’s biggest market by volume is about to become far more accessible for UK producers.
Of course, while Scotch takes the headlines, Welsh and English whisky producers will surely be celebrating the impact as well. This is a real “everybody wins” deal.
SWA chief executive Mark Kent
The numbers look good
The Scotch Whisky Association says this deal could increase Scotch whisky exports to India by £1 billion over the next five years and that it will support up to 1,200 jobs across the UK.
The removal of trade friction means better margins, stronger competitiveness, and more visibility in one of the most complex but potentially lucrative spirits markets on Earth.
A 150% tariff is obviously some deterrent, and, with that wall coming down, producers in the UK gain a genuine competitive edge over rivals in the US, Europe, and beyond, particularly as India is forecast to become the world’s third-largest economy within three years.
“The UK-India free trade agreement is a once-in-a-generation deal and a landmark moment for Scotch Whisky exports to the world’s largest whisky market. It shows that the UK government is making significant progress towards achieving its growth mission, and the Scotch Whisky industry looks forward to working with the UK and Indian governments in the months ahead to implement the deal, which would be a big boost to two major global economies during turbulent times,” says 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, and has the potential to increase Scotch Whisky exports to India by £1bn over the next 5 years, creating 1,200 jobs across the UK. It will also give discerning consumers in India far greater choice of brands, as more SME Scotch Whisky producers have the opportunity to enter the market.”
This is very good news for Scotch whisky producers and beyond
A level playing field for all sizes
It’s good news for the industry giants but could be transformative for smaller distillers too.
Lower tariffs and faster customs clearance should make it easier for smaller and independent distilleries to enter India, many for the first time. Those distilleries now face fewer administrative hoops, clearer procedures in English, and stronger digital infrastructure to help ease entry into the market.
That means greater choice for India’s whisky drinkers and a new revenue stream for British producers.
India deal: biggest since Brexit?
Let’s not mince words: this is the most economically significant trade deal the UK has signed since leaving the EU. With projected gains of £4.8 billion to UK GDP and £2.2 billion to wages annually in the long term, the benefits stretch far beyond whisky. But few sectors stand to benefit quite as dramatically – or as visibly – as spirits.
Information provided by the UK government reveals India is home to the world’s largest whisky-drinking population. It also reports that there are 1.9 million people of Indian heritage living in the UK, demonstrating how deep the cultural ties run. The growing Indian middle class is increasingly looking beyond mass-market blends, seeking premium experiences, and Scotch fits the bill. With this deal, UK distillers can finally deliver on that demand at more realistic prices.
India’s whisky thirst was long positioned as a golden opportunity. Now the cork’s finally coming off the bottle.
