The Scotch whisky industry has urged the United Kingdom and India to move quickly on implementing the India-UK Free Trade Agreement (FTA), despite fresh concerns over Britain’s upcoming steel import restrictions.
The India-UK Comprehensive Economic and Trade Agreement (CETA), signed during Prime Minister Narendra Modi’s UK visit last year, is expected to significantly reduce import duties on Scotch whisky and strengthen bilateral trade between the two countries.
The agreement has already progressed through the UK parliamentary ratification process. However, its operational rollout has reportedly faced delays due to the UK’s proposed safeguard measures on steel imports, which are scheduled to come into effect from July.
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Scotch Whisky Industry Optimistic About India Market
Speaking ahead of a business event at Downing Street in London, Mark Kent, Chief Executive of the Scotch Whisky Association (SWA), said the industry remains hopeful that the agreement will be implemented soon.
Kent said strong trade relationships with both established and emerging markets continue to drive the global success of Scotch whisky exports. He noted that the India trade agreement, tariff reductions in China, and improved market access in the United States have created positive momentum for British distillers.
He also thanked the UK government for supporting the sector and expressed hope for the “swift implementation” of both the India and US trade agreements to unlock new export opportunities.
Steel Import Rules Create Fresh Hurdles
The comments come amid discussions around the UK’s new steel import measures, which could limit tariff-free steel imports from July.
According to reports, India’s Commerce Secretary Rajesh Agrawal said the steel safeguard measures were not part of the original FTA negotiations.
He said both countries are working together to find a practical and “creative solution” that would allow the India-UK CETA to be operationalised at the earliest.
Major Tariff Relief for Scotch Whisky
Scotch whisky is expected to be one of the biggest beneficiaries of the trade pact.
Under the agreement, India’s current 150% import tariff on Scotch whisky will be immediately reduced to 75% after implementation. The duty will then gradually decline to 40% over the next 10 years.
The tariff reduction is expected to make premium Scotch whisky brands more affordable and competitive in India, which is among the world’s fastest-growing premium spirits markets.
Industry experts believe the deal could boost Scotch whisky exports to India significantly over the coming decade while also encouraging premiumisation in the Indian alco-beverage sector.
UK Government Highlights Economic Benefits
UK Business and Trade Secretary Peter Kyle said the agreement would create real economic benefits for British businesses, workers, and exporters.
He said trade deals help industries innovate, expand exports, and create jobs across regions, including whisky-producing areas in Scotland and manufacturing hubs in England.
British Prime Minister Keir Starmer also described the India trade pact as part of the UK government’s broader economic growth strategy.
According to the UK government, the agreement could support thousands of jobs and contribute billions of pounds to the British economy in the long term through higher wages, increased exports, and business expansion.
Starmer said the government remains focused on ensuring economic growth translates into better wages, stronger local economies, and more employment opportunities across the country.
The UK Prime Minister made the remarks during an event at 10 Downing Street, where business leaders, workers, and apprentices gathered to discuss the government’s economic agenda amid ongoing global economic uncertainty.
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