The United Kingdom and India have struck a landmark Free Trade Agreement, hailed as the most ambitious post-Brexit trade pact, which promises to transform the fortunes of British food and drink exporters-especially Scotland’s whisky industry.
Announced on 6 May 2025, the deal will see Indian tariffs on whisky and gin slashed from 150% to 75% immediately, with a further reduction to 40% over the next decade, unlocking access to the world’s largest whisky market. Other British favourites, from soft drinks and chocolates to biscuits and crispbreads, will also benefit from tariff-free entry into one of the world’s fastest-growing economies.
Industry leaders have welcomed the agreement as a “defining moment” that will drive investment, boost exports, and create jobs across the UK, while giving Indian consumers greater access to premium British brands
Karen Betts, Chief Executive, The Food and Drink Federation, said:
“We’re delighted the government has finalised its new Free Trade Agreement with India, which is testament to the hard work of the negotiating team. This is very welcome news for UK food and drink manufacturers, particularly for soft drinks, chocolates, biscuits, crispbreads and crackers, which will now all benefit from tariff-free access to one of the fastest growing markets in the world. The UK exported nearly £300m worth of food and drink to India in 2024, so this FTA represents a significant opportunity for British food and soft drinks.
“The FTA will also provide UK manufacturers with greater access to ingredients produced in India, strengthening the supply chain resilience and competitiveness for our sector. We look forward to working with government to ensure that the full benefits of the agreement are realised across a wide range of UK food and drink manufacturers.”
William Wemyss Managing Director of Wemyss Family Spirits, which counts Kingsbarns Distillery near St Andrews, as well as Darnley’s Gin and Wemyss Malts among its brands, said:
“India has long been seen as the single most exciting growth market for Scotch. It’s home to the largest population of whisky drinkers in the world, yet until now, punitive tariffs of 150% have held us back.
“For years, whisky producers like us have been locked out of meaningful access despite strong demand and growing appreciation for high-quality spirits.
“The phased reduction of tariffs, from an immediate cut from 150% to 75%, with a target of 40% over the next decade, changes everything. It finally gives us a fairer footing to compete in a market that has been out of reach for too long.”
“This deal could open the door to sustained investment, new partnerships, and long-term growth not just for our own business, but for distilleries across Scotland. It’s a positive and pragmatic step in the right direction, and one that we hope will be implemented swiftly and effectively.
“We welcome the agreement and remain committed to bringing our whisky to new audiences around the world, sharing a product that’s proudly Scottish but globally loved.”
Aaron Damiano Sparkes, Founder and CEO at Whisky 1901 said:
“The recent finalisation of the £4.8 billion United Kingdom–India trade agreement represents a defining moment for the Scotch whisky industry and for the broader landscape of British exports. This milestone accord introduces significant opportunities for expansion, investment, and long-term growth. Central to this agreement is the phased reduction of India’s historically prohibitive whisky import tariffs. These duties, currently at 150 percent, will be reduced to 75 percent immediately, with a further decrease to 40 percent over the next decade. This shift provides Scotch whisky with unprecedented access to the world’s largest whisky-consuming nation, home to over 1.4 billion people and a rapidly growing middle class with increasing demand for premium spirits.
“The implications for the industry are profound. Globally recognised brands such as Johnnie Walker and Chivas Regal are well positioned to benefit from enhanced visibility and market share. However, this opportunity extends well beyond retail. The whisky cask market stands to experience significant growth, driven by increased interest in mature stock, rare expressions, and long-term investment casks. At Whisky 1901, we view this development as a catalyst for value creation across the supply chain. As demand accelerates, the market for premium casks will strengthen, offering enhanced opportunities for our clients.
“According to projections by the Scotch Whisky Association, this trade agreement could facilitate up to £1 billion in additional Scotch whisky exports to India over the next five years, contributing to a wider economic uplift of £4.8 billion for the United Kingdom. This is not merely a trade deal. It is a strategic advancement that honours the heritage of Scotch whisky, strengthens the position of British craftsmanship on the world stage, and sets the foundation for sustained international growth.”
