A landmark trade agreement between the UK and India is set to unlock £25.5 billion in bilateral trade, with sweeping tariff cuts poised to give Scotland’s whisky and gin producers a long-awaited foothold in the world’s largest whisky market.
The deal, revealed by the Department for Business and Trade this week, will see Indian tariffs on 90% of British product lines reduced, with 85% of those becoming fully tariff-free within ten years. For Scottish distillers, the most significant shift comes in the form of steep reductions on the 150% duty currently levied on whisky and gin. These will fall to 75% immediately and reduce further to 40% by year ten.
Mark Kent, Chief Executive of the Scotch Whisky Association, welcomed the deal as a “once in a generation” breakthrough, describing the tariff changes as “transformational” for an industry that has been eyeing India’s growing market with frustration for years.
“This deal has the potential to increase Scotch whisky exports to India by £1 billion over the next five years and create 1,200 jobs across the UK,” he said. “It will also give discerning consumers in a highly educated whisky market far greater choice from SME producers, who until now have been effectively locked out.”
Currently, Scotch accounts for just 3% of the Indian whisky market. But industry stakeholders believe the shift in import levies could reposition Scotland’s spirit exports overnight, making premium products more accessible to Indian buyers and supporting wider sector growth.
One such business is Wemyss Family Spirits, the Fife-based independent distiller behind Kingsbarns Distillery and Darnley’s Gin. Managing Director William Wemyss called the deal “a positive and pragmatic step in the right direction.”
“India has long been the most exciting growth market for Scotch,” he said. “Punitive tariffs have held us back, despite strong demand and growing appreciation for high-quality spirits. This deal finally gives us a fairer footing and opens the door to sustained investment, new partnerships and long-term growth—not just for us, but for distilleries across Scotland.”
The agreement is expected to benefit the wider hospitality and tourism ecosystem too, from bottlers and logistics partners to visitor attractions and brand-led experiences.
The Department for Business and Trade confirmed that the UK-India agreement is part of a broader strategy to open global markets for British goods and services, with spirits identified as a flagship sector for export-led growth.
As implementation plans take shape, Scotland’s distillers are hopeful that Indian consumers – already the most populous whisky-drinking nation in the world – will soon be raising a dram of Scotch in growing numbers.