Kier Starmer’s Visit to India to Help Scottish Businesses

The UK Prime Minister Kier Starmer, along with trade representatives arrived in India on a two-day visit on Wednesday, which is expected to drive home the benefits of the landmark UK-India trade deal for Scottish businesses. The UK-India deal is set to grow the Scottish economy by $254.49 million a year.

Among all, Scotch whisky is a big winner in the UK Government’s deal with India, the best deal that any country has ever agreed with the fourth largest economy in the world. Indian import tariffs on Scotch are set to be slashed, meaning a potential increase in sales to India of $1.34 billion a year, growing its market share in the world’s largest whisky market.

Scotch Whisky is popular among Indian consumers, but a 150% tariff on imports of Scotch Whisky into India has meant that it is significantly more expensive to buy Scotch over Indian whiskies, Scotch Whiskey Association (SWA) said.

According to SWA, as a result of the steep hike in tariff, India sees many ‘fake’ Scotch Whiskies on the market, produced cheaply and traded on the reputation of Scotch Whisky as a premium product. This unfair competition, alongside the 150% tariff and combined with the complexity of exporting whiskies into India, meant that many Scotch Whisky producers are unable to enter this important market.

Breaking down these barriers to trade in India could open up huge opportunities for Scotch Whisky exports, SWA said.

SWA and UK-India FTA

India is the Scotch Whisky industry’s number one priority market, and a UK-India trade deal has the potential to increase Scotch Whisky exports to the country by up to $1.34 billion over the next five years.

Reducing the 150% tariff on Scotch Whisky could make it more affordable in India, while still remaining a high-end, premium product. If the tariff were liberalised, Scotch Whisky’s market share could double to 6%, giving greater access to Scotch Whisky products for Indian consumers but still allowing Indian whiskies and other spirits to retain the dominant share of the market.

In fact, many more Scotch Whisky companies – including smaller and independent producers – could gain access to the Indian market to sell their whiskies under the FTA announced in Spring 2025. “Boosting access to the Indian market could secure jobs and investment in the Scotch whiskey industry across Scotland into the future. The industry’s contribution to the economy could rise by up to $401.83 million to nearly $8.04 billion.

“Higher exports mean higher production – there could mean a significant impact into our supply chain too, in Scotland and across the UK, also growing jobs and investment,” SWA noted.

Good for India

Bringing down the 150% tariff on Scotch Whisky could increase Indian government tax revenue at federal and state level by up to $4.55 billion annually through an increase in sales. The Scotch whisky would be able to compete fairly alongside Indian whiskies, which will continue to dominate the Indian whisky market.

Because a lot of the whisky exported to India is sent in bulk (some for bottling as Scotch Whisky, most for use in Indian whisky) bringing down the tariffs could also support domestic producers, reducing their costs and boosting employment in the Indian industry.

SWA CEO Mark Kent said that following the efforts of the UK Government to secure the UK-India FTA, and look forward to its swift and smooth implementation. Delivering liberalised tariffs on all their exports to India will open up access to the world’s largest whisky market in the years to come and give greater choice to Indian consumers.