India and the United Kingdom signed a historic trade agreement in 2025: CETA (Comprehensive Economic and Trade Agreement), which took effect yesterday, July 15, 2026.
The agreement reduces tariffs, particularly on Scotch Whisky and Gin in India, while the United Kingdom offers duty-free access to 99% of Indian products.
Key Points:
• India is lowering tariffs on Scotch whisky and gin from 150% to 75% initially, with a gradual reduction to 40% over ten years.
• The United Kingdom is granting duty-free access to 99% of Indian exports.
• The agreement also opens up more opportunities for services, public procurement, and broader economic cooperation.
The most significant impact of this agreement on the spirits sector is improved access to the Indian market for Scotch whisky and gin—two categories that were highly price-sensitive due to the previous tax burden.
In practice, this could boost sales volumes, although the ultimate impact will depend on rules of origin, distribution channels, and changes in India’s domestic tax policies.
From a B2B perspective, the agreement benefits British exporters of beverages, food, and consumer goods, as well as Indian importers and distributors seeking to position themselves in premium segments.
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