UK-India trade talks
The Indian market for Scotch Whisky
India is Scotch Whisky’s largest export market by volume, with the equivalent of more than 220 million bottles exported there in 2025. The volume of Scotch Whisky exports to India have grown by more than 200% in the past decade alone, and whisky is hugely popular in India. In fact, India is the largest whisky market in the world. But while many Indian consumers are keen to add a bottle of Scotch to their shelves, bars and collections, Scotch Whisky has just a 3% share of the Indian whisky market. There is huge potential for that to grow with the free trade agreement, which enters into force in summer 2026.
“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
Potential for future export success
Scotch Whisky is popular among Indian consumers, but a 150% tariff on imports of Scotch Whisky into India has meant that it’s significantly more expensive to buy Scotch over Indian whiskies. As a result, India sees many ‘fake’ Scotch Whiskies on the market, produced cheaply and traded on the reputation of Scotch Whisky as a premium product. This unfair competition, alongside the 150% tariff and combined with the complexity of exporting whiskies into India, has meant that many Scotch Whisky producers have been unable to enter this important market.
The Scotch Whisky industry & a UK-India Free Trade Agreement
Reducing the 150% tariff on Scotch Whisky could make it more affordable in India, while still remaining a high-end, premium product. Once the UK-India FTA has entered into force, Scotch Whisky’s long term market share in India could increase, giving greater access to Scotch Whisky products for Indian consumers but still allowing Indian whiskies and other spirits to retain the dominant share of the market.
Good for Scotland and the UK
Many more Scotch Whisky companies – including smaller and independent producers – now have the potential for access to the Indian market to sell their whiskies following the FTA's entry into force. Boosting access to the Indian market could secure jobs and investment in the Scotch Whisky industry across Scotland into the future.
Higher exports mean higher production, with the potential to boost employment and growth throughout the supply chain in Scotland and across the UK.
Good for India
The FTA's reduction of the 150% tariff on Scotch Whisky could also significantly increase Indian government tax revenue at federal and state level through an increase in sales.
Scotch Whisky are now able to compete fairly alongside Indian whiskies, which will continue to dominate the Indian whisky market.
Because a lot of the whisky exported to India is sent in bulk (some for bottling as Scotch Whisky, most for use in Indian whisky) bringing down the tariffs could also support domestic producers, reducing their costs and boosting employment in the Indian industry.
UK-India trade talks news & commentary
SWA comments on UK-India FTA entry into force
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UK-India talks offer 'golden opportunity' for Scotch Whisky
The SWA has welcomed the launch of trade talks between the UK and India.
SWA welcomes tax cut in key Indian state
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