The United Kingdom and India have reached a free trade agreement that will significantly reduce tariffs on Scotch whisky and numerous other products. This agreement comes after more than three years of negotiations, which had stalled under the previous British government.
The British government stated that the deal will lower Indian import taxes on whisky, cosmetics, medical products, auto and aircraft parts, and other goods from the UK. Tariffs on whisky and gin will be halved from 150% to 75%, eventually dropping to 40% in the tenth year of the agreement. Tariffs on automobiles will decrease from over 100% to 10% under a quota system.
India's Ministry of Commerce reported that 99% of Indian exports will be exempt from tariffs. The UK anticipates that the agreement will boost bilateral trade by £25.5 billion (€30 billion) annually in the long term. Mark Kent, Chief Executive of the Scotch Whisky Association, described the agreement as potentially "transformative" for the industry, with the potential to increase Scotch whisky exports to India by £1 billion over the next five years.