The UK-India Free Trade Agreement, which will cut whisky tariffs, has officially come into force today (15 July 2026), just over a year since it was signed. 

The agreement announced last year (6 May 2025) by the Department for Business and Trade stated whisky tariffs would drop from 150% to 75%, before falling to 40% by the 10th year of the deal between the two nations.

The deal, which is described as the “most comprehensive ever agreed by India”, could boost UK GDP by £4.8bn, real wages by £2.2bn and bilateral trade by £25.5bn every year, benefitting industries across the UK, according to GOV.UK.

Business and trade secretary Peter Kyle said: “We are bringing our landmark trade deal with India into force as quickly as we can, because we want businesses and the public to feel the benefits immediately, including cuts to tariffs of £400m within the first year alone. 

“The deal gives British exporters an edge over international competitors, and I would encourage all businesses to ensure they are properly prepared to allow them to sell to India’s huge market in the years to come.

“This week our UK-India Roadshow will begin travelling across all four nations to promote the incredible new opportunities this deal offers.”

Less cost for British businesses importing Indian products could mean cheaper prices and more choice for consumers across the country.

Nodjame Fouad, chief executive of the aged spirits and champagne division at Pernod Ricard, added: “The opening up of the Indian market represents a significant opportunity for the UK as the world’s leading exporter of spirits, and a welcome boost for the Scotch whisky industry. It supports Scotland’s export ambitions, enhancing competitiveness in a key international market and reinforcing the contribution our industry makes to jobs, investment and economic growth across Scotland and the wider UK.  

“We are grateful to the UK and Indian Governments for their efforts in delivering this agreement and we will work hard to help realise its full potential.”