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UK-India Trade Deal Slashes Scotch Whisky Tariffs

10/10/2025

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Summary

Story summary

The United Kingdom–India Free Trade Agreement (UK-India FTA) will cut Scotch whisky tariffs from 150% to 75% on implementation in the second half of 2026, with a further drop to 40%.
The deal could lift Scotch exports to India by up to £1 billion annually and expand its share in the world’s largest whisky market.
Yet high state-level taxes and competition from domestic Indian brands will challenge the sector as producers adapt.

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Story summary

The United Kingdom–India Free Trade Agreement (UK-India FTA) will cut Scotch whisky tariffs from 150% to 75% on implementation in the second half of 2026, with a further drop to 40%.
The deal could lift Scotch exports to India by up to £1 billion annually and expand its share in the world’s largest whisky market.
Yet high state-level taxes and competition from domestic Indian brands will challenge the sector as producers adapt.