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Cheers! WHISKY to get CHEAPER as UK-India Trade Deal Cuts Scotch Tariffs

British Prime Minister Keir Starmer arrived in Mumbai on Wednesday for his first India visit, with the key focus on strengthening trade ties and reducing whisky prices under the new agreement.

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Edited By: Vinay
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Credit:Top Indian News (Credit:Top Indian News)

National News: British Prime Minister Keir Starmer has started his two-day visit to India with a high-level delegation of 125 CEOs, business leaders, and government officials. This is his first official trip to India after taking charge as the UK’s Prime Minister. The main purpose of the visit is to push forward the India-UK free trade agreement. Among the highlights is the focus on Scotch whisky exports, which could see a major reduction in prices in India. The visit also aims to boost diplomatic and cultural ties between the two countries.

Cheaper Scotch whisky in India

One of the biggest outcomes expected from the free trade agreement is cheaper Scotch whisky in Indian markets. Currently, Scotch whisky faces a heavy 150% import duty in India, making it very costly. Under the deal, this duty will first be reduced to 75% and later brought down to 40% over the next decade. As a result, popular premium brands such as Johnnie Walker Black Label, Glenfiddich, and Chivas Regal may become ₹200–₹300 cheaper per bottle. Mid-range brands like 100 Pipers and Black & White could drop by ₹100–₹150.

Major boost to Scotch industry

The deal is being celebrated in the UK, particularly in Scotland, where whisky is a major industry. Reports suggest that the Scotch whisky sector could gain nearly £190 million every year through this agreement. According to the Scotch Whisky Association, the Indian market is the largest whisky consumer base in the world. Lower duties will not only make Scotch affordable but also give Scottish producers better access to a fast-growing economy. For the UK, this is a chance to expand exports and create nearly 1,000 new jobs.

Broader trade and economic impact

Beyond whisky, the agreement covers a wide range of goods and services. The India-UK comprehensive economic and trade agreement is expected to increase bilateral trade by £25.5 billion. It could also add £4.8 billion to the UK’s GDP and boost worker incomes by £2.2 billion annually. Indian exports to the UK will also benefit as 99% of them will get duty-free access under the deal. Products like shortbread and Scotland’s famous soft drink Irn-Bru are also expected to enter Indian markets at lower costs.

Political and diplomatic importance

This agreement carries strong political weight for both sides. For Prime Minister Starmer, it demonstrates commitment to strengthening Britain’s economic relationship with India. For Prime Minister Narendra Modi, it shows India’s growing role as a key global trade partner. Starmer will also meet Modi in New Delhi to finalize discussions on the deal. Both leaders are expected to highlight the importance of mutual growth, cooperation, and investment in future sectors like green energy, digital trade, and defense collaboration.

Support from Scottish leaders

Scotland’s Minister for External Affairs Douglas Alexander has called this deal historic, especially for the whisky industry. He said it will bring huge opportunities for Scottish businesses. Similarly, the Scotch Whisky Association’s chief executive Mark Kent welcomed the agreement, saying India offers unmatched potential for Scotch exports. He added that reduced duties will give Indian consumers more choice while opening new avenues for exporters. This partnership is being seen as a win-win for both economies, creating jobs in the UK and more options for Indian buyers.

Symbol of stronger India-UK ties

Starmer’s India visit marks a new chapter in bilateral relations. His delegation includes top names from Rolls-Royce, British Telecom, Diageo, London Stock Exchange, and British Airways. The focus is not only on whisky but also on expanding investment in technology, aviation, and financial services. The UK government believes this agreement will create long-term benefits for both sides. For India, it means cheaper imports and stronger global positioning, while for Britain it ensures economic growth in a changing post-Brexit world. The visit highlights shared interests and future cooperation.

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