UK Prime Minister Keir Starmer arrived in Mumbai on Wednesday for his first visit to India as PM. A major focus of the trip is the Scotch whisky industry, seen as a “big winner” of the India-UK Free Trade Agreement (FTA), which the UK government expects will boost the Scottish economy by 190 million pounds a year.
India and the UK signed the FTA in July during PM Narendra Modi’s visit to London. The deal cuts tariffs on goods from textiles to whisky and cars and opens up more market access for businesses.
Downing Street said members of the Scotch Whisky Association and producers are joining Starmer’s trade mission to explore potential whisky sales to India worth 1 billion pounds a year, creating more than 1,000 new UK jobs.
Representatives from Diageo and the Scotch Whisky Association are also part of the trip.
The India-UK deal will cut tariffs for UK whisky firms from 150% to 75%, eventually reducing them to 40% over the next decade.
The industry has been pushing the UK government to reduce US tariffs after a deal with the US did not include whisky.
In India, Scotch whisky is very popular. Many consumers spend on premium brands, and India is among the top markets in the world for Scotch. Famous names like Johnnie Walker, Chivas Regal, Buchanan’s, and Glenfiddich are already well-known among Indian whisky lovers.
According to Reuters, talks on the trade pact were concluded in May after three years of stop-start negotiations. Both countries accelerated efforts amid tariff issues caused by US President Donald Trump.
The deal between India and United Kingdom aims to increase bilateral trade by 25.5 billion pounds ($34 billion) by 2040.
Officials said Starmer’s visit will include meetings with senior ministers in PM Modi’s cabinet and business leaders to deepen trade and diplomatic ties, benefiting the whole UK.
