Archive · 25 Jul 2025
India-UK Trade Pact Cuts Scotch Whisky Tariffs
India and the UK made a deal to help each other trade.
This means it will be cheaper to buy Scotch whisky from the UK in India because the taxes (tariffs) are going down.
At first, the taxes will be cut in half, and then even lower over time.
The people who make Scotch are happy because they can sell more whisky in India.
But, the people who make alcohol in India are worried that cheaper whisky from the UK will hurt their business and that foreign companies would have a business advantage.
The agreement doesn't have rules to stop companies from selling alcohol at very low prices, which some worry about.
India and the UK signed the Comprehensive Economic and Trade Agreement (CETA).
Tariffs on Scotch whisky imports to India will be reduced from 150% to 75% immediately.
The agreement will further reduce tariffs to 40% over ten years.
UK Scotch distillers welcome the deal for increased market access.
India's domestic alcoholic beverage industry expresses concerns about potential dumping.
- Who
- India and the UK, Scotch whisky distillers, and India's domestic alcoholic beverage industry.
- What
- India and the UK signed the Comprehensive Economic and Trade Agreement, impacting Scotch whisky tariffs.
- When
- The agreement was signed recently.
- Where
- Between India and the United Kingdom.
- Why
- To facilitate trade and reduce tariffs on specific goods.
UK Scotch Distillers
India's Domestic Beverage Industry
Tariff Impact
UK Scotch Distillers
Welcome the reduction in tariffs.
India's Domestic Beverage Industry
Concerned about potential dumping and lack of market access.
Benefits vs. Concerns
UK Scotch Distillers
See an opportunity to invest and create jobs.
India's Domestic Beverage Industry
Concerned that lower import duties will make it easier for MNC's to import their products.
- Agreement
- India-UK Comprehensive Economic and Trade Agreement (CETA)
- Scotch Tariff Reduction
- From 150% to 75% (immediate)
- Further Tariff Reduction
- To 40% over 10 years
- UK Whisky Export Value (2024-25)
- $260 million
- Industry Concern
- Potential dumping of imported alcohol