India-UK FTA Takes Effect: Premium Scotch Whisky and Wine Get Cheaper From Today

New Delhi: An ambitious trade deal between India and the United Kingdom (UK) officially comes into effect on July 15. This will usher in a new era in India's economic diplomacy. The Comprehensive Economic and Trade Agreement (CETA) between India and the United Kingdom was signed in July 2025. 

When was the agreement signed?

Officially called the India-UK Comprehensive Economic and Trade Agreement (CETA), the deal was signed in July 2025. The two countries signed the agreement on July 24, 2025. This agreement, finalized after 14 rounds of negotiations, has now come into effect. This deal is set to significantly benefit the country. 

With the implementation of this deal, trade between India and Britain has become easier and cheaper. The best news for consumers of foreign wine and scotch is that Indians will now be able to access them at cheaper rates. Furthermore, chocolates, biscuits, cosmetics, and clothing from foreign brands will also become cheaper than before.

How much cheaper will Scotch whisky be?

Previously, Scotch whisky imported from Britain was taxed at 150 per cent. However, now the tax on Scotch whisky has been reduced to 75 per cent. This means the tax has been halved. However, in the next 10 years, it will reach 40 percent. This means that Scotch whisky and wine will now be available at cheaper rates to Indians.

Additionally, British cars will become cheaper in India. This means that Defenders, Land Rovers, and Jaguars will now be available at slightly lower prices in India due to reduced import duties. However, taxes on some cars will reach 10 per cent within 10 years. 

Will India sell goods to Britain without import duty?

According to the trade deal, India stands to benefit from exports to Britain. India will now be able to export approximately 98 per cent of its goods to the UK without any import taxes. This means that trade will become easier. India's textiles, ready-made garments, seafood, leather, footwear, sports goods, toys, gems and jewellery, engineering goods, and auto parts will benefit the most.  

What is the target?

Darpan Jain of the Commerce Ministry stated that bilateral trade between India and the UK is currently US$60 billion. The goal is to increase this to US$100 billion by 2030. About 98 per cent of goods from India will enter the UK market duty-free. India's coastal states will benefit from the India-UK CETA. Andhra Pradesh, Gujarat, Kerala, Odisha, etc. will benefit the most because they have strong maritime infrastructure.