UK-India Free Trade Deal Signed - Who Wins in the Whisky Industry

After three years of negotiations, the UK and India have finally signed a free trade agreement, sparking excitement in the whisky industry. Scotch Whisky Association CEO Mark Kent described the agreement as a once-in-a-generation milestone, providing Scotch whisky access to the world's largest whisky market.

William Wemyss, Managing Director of independent UK spirits company Wemyss Family Spirits, noted that previously high tariffs of up to 150% made it difficult for premium whisky to enter the Indian market. Now, tariffs will be phased down, immediately dropping to 75% and targeting 40% within a decade—a game-changer. Leti Blagoeva, co-founder of D'Yavol, agreed, stating that lower tariffs will allow more Indian consumers to experience high-quality Scotch whisky.

Jean-Etienne Gourgues, Chairman and CEO of Pernod Ricard-owned Chivas Brothers, highlighted that the deal will bring long-term investment and job opportunities to Scotch whisky exports amid global economic uncertainty.

However, Indian producers like Paul John Chairman Paul P. John had expressed concerns about low-end Scotch whisky potentially disrupting local sales. Jason Holway, Senior Research Consultant at IWSR, countered that most producers are focusing on premium products, making dumping or predatory pricing unlikely.

On the other hand, Sanjeev Banga, President of International Business at Radico Khaitan, India's fourth-largest spirits company, welcomed the deal, pointing out that Indian single malt whisky has reached world-class quality. The agreement could eliminate non-tariff barriers for Indian whisky in the UK, boosting export opportunities.

Overall, the agreement levels the playing field for Scotch whisky in India while offering local producers a chance to enhance their global presence.

2025-05-09

Source - https-//www.thedrinksbusiness.com/2025/05/uk-indian-free-trade-deal-who-are-the-winners-in-whisky/