UK-India Trade Deal: Boosts Scotch Whisky and Economies
LONDON — May 17, 2024 — The newly forged UK-India trade deal, a pivotal agreement, is set to revolutionize the Scotch whisky sector. Both nations will see economic benefits from reduced tariffs and increased market access. Underlining confidence from industry leaders, this momentous deal ensures a future of strengthened economic ties for both countries and a boost of investments.
UK-India Trade Deal: A Boon for Scotch Whisky and Global Economies
A new free trade agreement (FTA) between the United Kingdom and India is poised to dramatically reshape the Scotch whisky industry and boost both economies.the deal, negotiated by the Department for Business and Trade, promises significant tariff reductions and increased market access.
Transformative Impact on Scotch Whisky
The centerpiece of the agreement is the reduction of the existing 150% tariff on scotch whisky imports to India. this move is expected to unlock significant growth opportunities for the industry.
Did you know? India is the world’s largest whisky market,but Scotch whisky has faced significant barriers due to high import duties.
Mark Kent, Chief Executive of the Scotch Whisky Association, described the deal as a once in a generation deal and a landmark moment for Scotch Whisky to the world’s largest whisky market.
The Scotch Whisky Association anticipates a surge in exports to India, potentially reaching £1 billion over the next five years. This expansion is projected to create approximately 1,200 jobs across the UK.
Economic Benefits for Both Nations
Beyond the whisky industry, the FTA is expected to generate substantial revenue for both the Indian federal and state governments. Projections estimate an annual boost of over £3 billion.
Pro Tip: The FTA not only benefits large corporations but also provides opportunities for small and medium-sized enterprises (SMEs) to enter the Indian market.
Indian consumers are also set to benefit from the agreement,gaining access to a wider variety of Scotch whisky products,including those from smaller,specialized producers.
The reduction of the current 150% tariff on Scotch Whisky will be transformational for the industry. The deal has the potential to increase Scotch Whisky exports to India by £1bn over the next 5 years and create 1200 jobs across the UK. The deal is good for India too, boosting federal and state revenue by over £3bn annually, and giving discerning consumers in a highly educated whisky market far greater choice from SME Scotch Whisky producers who will now have the opportunity to enter the market.
Mark Kent, Chief Executive of the Scotch Whisky Association
Government’s Growth mission
The UK government views the FTA as a significant step towards achieving its broader economic growth objectives.The successful negotiation of the agreement underscores the dedication and collaborative efforts of both the UK and Indian negotiating teams.
The scotch whisky industry is committed to working closely with both governments to ensure the smooth implementation of the deal. This collaboration is seen as crucial for maximizing the benefits for both economies during a period of global economic uncertainty.
This agreement shows that the UK government is making significant progress towards achieving its growth mission, and the negotiating teams on both sides deserve huge credit for their dedication. The Scotch Whisky industry looks forward to working with the UK and Indian governments in the months ahead to implement the deal which would be a big boost to two major global economies during turbulent times.
Mark Kent, Chief Executive of the Scotch Whisky Association
