Archive · 25 Jul 2025
India-UK FTA: Reduced Tariffs on Alcohol and New Opportunities
India and the UK made a deal to trade more easily.
This means taxes on British whisky and gin imported to India will go down, possibly making them cheaper.
Some people worry about cheaper imports hurting local alcohol brands.
Also, Indian turmeric farmers hope to sell more turmeric in the UK because of the deal, which might help them get better prices for their crop.
India and the UK signed a Free Trade Agreement (FTA) reducing tariffs on British whisky and gin.
Tariffs on British whisky and gin will decrease from 150% to 75%, further to 40% in the tenth year of the FTA.
Liquor prices are expected to fall, with potential price drops varying based on state excise duties.
The agreement does not impose minimum import price rules on Scotch imports, causing concerns.
Turmeric farmers in India anticipate a new market and better prices due to the FTA.
- Who
- India and the UK.
- What
- India and the UK signed a Free Trade Agreement.
- When
- The FTA was signed, with price changes expected in the coming months.
- Where
- India and the UK.
- Why
- To reduce tariffs and increase trade between India and the UK.
Domestic Industry Concerns
FTA Benefits
Dumping Concerns
Domestic Industry Concerns
The domestic industry is concerned about potential dumping of Scotch whisky at low prices, which would hurt the growth of Indian brands.
FTA Benefits
The FTA benefits domestic industry by making Scotch used in blended products cheaper.
- FTA Tariff Reduction
- British whisky and gin tariffs from 150% to 75%.
- Further Tariff Reduction
- 40% in the tenth year of the FTA.
- Whisky Export Value
- $260 million (2024-25)
- India's Turmeric Production
- 80% of global production
- Turmeric Export Target
- ₹5,000-crore by 2030
