Britain’s new trade deal with India will make a “massive difference” to the whisky industry in Scotland, the UK Chancellor has said.
Rachel Reeves said the agreement would help put “more money in people’s pockets” by increasing Scottish access to the Asian nation.
The UK Government’s deal with India, the biggest country in the world by population, will cut Indian tariffs on whisky from 150% to 75% before being reduced to 40% by the 10th year of the deal.
It is understood to be the first reduction of its kind for whisky exports – with a recent trade deal between India and Japan not resulting in lower tariffs for the spirit, despite Japan being a key producer.
The move could provide a boost to Scotland’s whisky sector, which faces tariffs from Donald Trump’s US administration.
Speaking to the media on Wednesday during a visit to the Glenkinchie distillery in East Lothian, the Chancellor said the deal was good news for Scotland.
She said: “As the Scotch Whisky Association said, this deal is transformational.
“It will more than half the tariffs applied to Scotch whisky being exported to India, and India is the biggest market in the world now for whisky.
“Having that access for Scotch whisky to the Indian market will make a massive difference to good jobs paying decent wages here in Scotland, putting more money in people’s pockets.
The Scotch Whisky Association has described the trade agreement as a “once in a generation deal” and a “landmark moment” for Scotland’s drinks sector.
🤝🇮🇳 "The UK-India free trade agreement is a once in a generation deal and a landmark moment for #ScotchWhisky exports"
— Scotch Whisky Association (@ScotchWhiskySWA) May 6, 2025
Read our response to @biztradegovuk's UK-India FTA announcement & what it means for 🥃👉 https://t.co/ldrRSdkqB1 pic.twitter.com/592wjrv4N4
Mark Kent, the trade body’s chief executive, said: “The reduction of the current 150% tariff on Scotch Whisky will be transformational for the industry.
“The 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.
“The deal is good for India, too, boosting federal and state revenue by over £3 billion annually, and giving discerning consumers in a highly educated whisky market far greater choice from SME Scotch Whisky producers who will now have the opportunity to enter the market.
“This agreement shows that the UK Government is making significant progress towards achieving its growth mission, and the negotiating teams on both sides deserve huge credit for their dedication.
“The Scotch whisky industry looks forward to working with the UK and Indian governments in the months ahead to implement the deal which would be a big boost to two major global economies during turbulent times.”
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