The UK Government has confirmed that the UK-India Comprehensive Economic and Trade Agreement will enter into force on 15 July 2026.8 Indian duties on UK whisky and gin fall from 150% to 75% on day one, staged to 40% from year 10, and UK businesses must register with HMRC to claim the reduced rates. For reference, see the GOV.UK announcements on the countdown to entry into force on 15 July and the Prime Minister’s meeting with Prime Minister Modi on 16 June 2026.
Prime Minister Keir Starmer’s October 2025 visit to India reinforced a major trade agreement with clear significance for the UK alcohol industry. The UK-India Comprehensive Economic and Trade Agreement was agreed in May 2025 and signed on 24 July 2025.1,2 During Starmer’s first official visit to India on 8-9 October, the UK and India looked ahead to ratifying the agreement and putting its benefits into practice. The Prime Minister also led a 125-strong business, education and cultural delegation to build momentum behind the partnership.3,4
The whisky and gin tariff cuts
For UK alcohol producers, the key measure is India’s commitment to reduce tariffs on UK whisky/whiskey and gin once the agreement enters into force. GOV.UK confirms that Indian imports from the UK of whisky/whiskey, worth more than £200 million a year in 2022 and currently facing tariffs of 150%, will see duties cut to 75% on day one and staged to 40% from year 10 onwards. Gin will benefit from the same reductions.5
Why this matters for Scotch Whisky
This matters because India is already a leading Scotch Whisky market. Scotch Whisky Association data shows India was the largest Scotch Whisky export market by volume in 2025, with 220 million 70cl bottles shipped, and the third largest by value, worth £286 million.6
What it means for the UK alcohol sector
The agreement is not yet in force, with both countries needing to complete domestic procedures before businesses can trade under its terms.7 For the UK alcohol industry, particularly whisky, gin and the wider spirits supply chain, the deal offers a stronger platform for long-term market access, competitiveness and investment confidence.
Primary Sources
UK Government release on the conclusion of the UK-India trade deal
https://www.gov.uk/government/news/uk-signs-trade-deal-with-indiaGovernment of India press release on the signing of the agreement on 24 July 2025
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2147805Joint statement following the Prime Minister's official visit to India
https://www.gov.uk/government/news/india-uk-joint-statement-9-october-2025UK Government release on the trade mission and 125-strong delegation
https://www.gov.uk/government/news/prime-minister-embarks-on-first-major-trade-mission-to-indiaUK Government summary of the agreement including the whisky and gin tariff staging
https://www.gov.uk/government/publications/uk-india-trade-deal-conclusion-summary/uk-india-trade-deal-conclusion-summarySWA 2025 export volume and value data including the India market
https://www.scotch-whisky.org.uk/newsroom/2025-export-figures/Final provisions of the UK-India CETA covering entry into force
https://www.gov.uk/government/publications/uk-india-ceta-chapter-30-final-provisionsUK Government announcement that the agreement enters into force on 15 July 2026, with whisky and gin duties falling and UK businesses required to register with HMRC to claim the reduced rates
https://www.gov.uk/government/news/the-countdown-begins-uk-india-fta-enters-into-force-on-july-15thDisclaimer.This article reflects Alcohol Ltd’s own views and analysis of publicly available information at the time of publication. It is provided for general industry information and does not constitute legal, regulatory, tax, financial or other professional advice. Policy positions, statutory references and external data may change without notice; readers should obtain independent professional advice before acting on anything published here. External links are provided for reference; Alcohol Ltd is not responsible for the content of third-party websites.
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