UK Prime Minister Keir Starmer began his first visit to India on Wednesday with a strong focus on trade and investment. The trip highlights the Scotch whisky industry, which is expected to be one of the biggest beneficiaries of the new India-UK Free Trade Agreement (FTA).
The FTA, signed in July during PM Narendra Modi’s visit to London, aims to strengthen business ties and reduce tariffs on key products — from textiles and cars to Scotch whisky. The UK government believes the deal will add £190 million to the Scottish economy every year.
Scotch Whisky Industry to Gain Big?
According to Downing Street, representatives from the Scotch Whisky Association (SWA) and leading producers are accompanying Starmer’s trade mission in Mumbai. They are exploring potential whisky sales to India worth £1 billion annually, which could create more than 1,000 new jobs in the UK.
The new trade deal will cut import tariffs on UK whisky from 150% to 75%, with a gradual reduction to 40% over the next decade. This could make top whisky brands like Johnnie Walker, Glenfiddich, and Chivas Regal more affordable for Indian consumers.
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In India, Scotch whisky is already a major favourite among premium alcohol buyers. The country ranks as one of the largest markets in the world for Scotch, with brands like Buchanan’s and Chivas Regal enjoying strong demand.
Industry Pushes for Global Market Access
The whisky industry has long been urging the UK government to secure better trade deals globally. While the new India-UK agreement is seen as a breakthrough, producers are also calling for tariff reductions with the US, after earlier trade discussions failed to include whisky.
An official statement noted that the India-UK FTA “will open new opportunities for UK businesses while providing Indian consumers with access to more premium international products.”
Trade Deal to Boost Bilateral Relations & Business
According to Reuters, the trade talks between India and the UK concluded in May 2025 after nearly three years of negotiations. The discussions picked up pace after earlier delays caused by tariff disputes during the tenure of former US President Donald Trump.
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The final agreement aims to increase bilateral trade between the two countries by £25.5 billion ($34 billion) by 2040, signalling stronger economic cooperation.
Officials said PM Starmer’s India visit will include meetings with senior ministers from PM Modi’s cabinet, as well as Indian business leaders. The goal is to deepen trade and diplomatic ties, ensuring benefits for both economies.
A Toast to Stronger Ties
As Scotch lovers in India await the price drop, experts say the deal could redefine trade between the two nations. It marks a major step in the UK’s post-Brexit trade strategy and India’s push for premium imports.
With the tariff cuts in motion, whisky brands like Johnnie Walker and Glenfiddich could soon be much easier on the wallet — giving Indian consumers more reasons to raise a glass to this new trade friendship.
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