The Scotch whisky industry has welcomed a "landmark" trade deal between the UK and India, which was announced this week following years of negotiations. 

Under the terms of the deal, which sought to reduce tariffs for British and Indian goods, India's tariffs on whisky and gin from the UK will be halved from 150 per cent to 75 per cent. The tariff is expected to be reduced to 40 per cent by the 10th year of the trade deal.

Mark Kent, chief executive of the Scotch Whisky Association (SWA), said the deal would be "transformational" for Scotch producers. India is a priority growth market for the SWA, and Kent has repeatedly called for the UK government to advance the trade negotiations. In 2024, India was the largest individual market for Scotch whisky exports by volume. Export volume to the country has increased by 46.6 per cent since 2019. 

Commenting on the new deal, Kent said: "The UK-India free trade agreement is a once-in-a-generation deal and a landmark moment for Scotch whisky to the world’s largest whisky market.

"The reduction of the current 150 per cent 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 five years and create 1,200 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.

"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."

Scotch producers have also reacted positively to the news. William Wemyss, managing director of Wemyss Family Spirits, which owns Kingsbarns Distillery among other brands, said: "India has long been seen as the single most exciting growth market for Scotch. It’s home to the largest population of whisky drinkers in the world, yet until now, punitive tariffs of 150 per cent have held us back."

He continued: "The phased reduction of tariffs... changes everything. It finally gives us a fairer footing to compete in a market that has been out of reach for too long.

"This deal could open the door to sustained investment, new partnerships, and long-term growth not just for our own business, but for distilleries across Scotland."