The United Kingdom’s newly concluded Free Trade Agreement (FTA) with India has been hailed as a major victory for Scotland’s whisky industry. Secretary of State for Scotland, Douglas Alexander, described the pact as a landmark deal expected to inject approximately £190 million annually into the Scottish economy.

Speaking in London, Alexander said that while the agreement was a major diplomatic success, the next step was to ensure its effective implementation to deliver long-term benefits for both British and Indian businesses.

A major highlight of the FTA is the sharp reduction in India’s import tariffs on Scotch whisky. Under the agreement, the current 150% tariff will be reduced to 75% immediately and further lowered to 40% over the next decade.

This is projected to boost Scotch whisky sales to India by £1 billion annually, significantly expanding its market share in one of the world’s fastest-growing spirits markets. The Scotch Whisky Association (SWA) described this as the best deal ever agreed with the world’s fourth-largest economy.

To fully utilise the opportunities presented by the FTA, UK Prime Minister Keir Starmer is leading a major trade mission to India. The delegation includes representatives from the Scotch Whisky Association and several Scottish businesses.

The mission aims to promote Scotland’s premium products, foster new business connections, and strengthen trade and diplomatic relations with Indian partners. Meetings are scheduled with senior Indian government ministers and key industry leaders to deepen bilateral cooperation.

Douglas Alexander, a former Trade Policy Minister in the Department for Business and Trade, played a pivotal role in negotiating this agreement. Drawing on his previous experience working closely with whisky producers and other Scottish enterprises, Alexander emphasised that the FTA could be transformative for the Scotch whisky sector. He said that his focus during the trade mission would be on maximising the opportunities created by this “crucial trade deal” for Scotland’s economic growth.

Mark Kent, Chief Executive of the Scotch Whisky Association, welcomed the tariff reductions, stating that the agreement would “open up access to the world’s largest whisky market” and offer more variety for Indian consumers. He noted that liberalised tariffs will create a fairer trading environment, allowing Scotch whisky producers to compete more effectively in India’s rapidly expanding premium spirits segment.

Alongside Prime Minister Starmer and Secretary Alexander, the UK Government’s delegation includes Business and Trade Secretary Peter Kyle and Investment Minister Lord Jason Stockwood. Their combined participation underscores the strategic importance of the India-UK trade partnership, viewed as a cornerstone of Britain’s post-Brexit trade policy.

The deal represents a significant milestone not just for Scotland’s whisky producers but also for the broader goal of expanding British exports to key Asian markets. As implementation begins, industry observers expect deeper collaboration between Indian importers and Scottish distilleries, generating economic gains on both sides.

Based On ANI Report