Historic India Trade Deal  - Huge Boost for Scotland’s Economy
Source: gov.uk (2025-07-28)

Great news for Scotland and Scottish jobs as figures show trade deal with India will deliver £190 million for Scotland as part of the Plan for Change.

Businesses and workers in Scotland are set to benefit from the UK’s trade deal with India, as new analysis shows the landmark agreement will deliver a £190 million boost for the Scottish economy as part of the Plan for Change.

The deal is great news for Scotch producers, with Indian import tariffs on whisky to fall from 150% to 75% immediately, dropping even further to 40% within 10 years. Soft drink will also benefit from tariffs cuts gradually from 33% to 0%.

The Prime Minister met his counterpart Narendra Modi on 24 July for the trade deal signing as Business and Trade Secretary Jonathan Reynolds and Commerce Minister Piyush Goyal put pen to paper on the landmark agreement. India is an important market for Scotland, with 457 Scottish businesses exporting a total of £610 million in goods there last year – this could grow even more thanks to lower tariffs, fewer barriers to trade, and easier customs.

Scottish Secretary Ian Murray said:

“This is great news for Scotland and Scottish jobs. Our trade deal with India is fantastic news for Brand Scotland, with our goods, businesses and services gaining access to what is projected to be the world’s third largest economy by 2027.

“From food, drink and textiles production, to clean energy, advanced manufacturing, life sciences and financial services, Scotland has so much to offer India.

“It’s fantastic news in particular for world-famous whisky industry, with Indian import tariffs slashed on Scotch having the potential to be transformational for the industry. It’s also good news for our other national drink, with tariffs on soft drinks cut.

“As the UK Government delivers our Plan for Change, we are also bringing inward investment to Scotland to create jobs, boost economic growth and improve living standards right across the UK.”

Business and Trade Secretary Jonathan Reynolds said:

“The millions brought to Scotland each year from the deal we’ve signed with India today will be keenly felt across local communities, whether that’s higher wages for workers, more choice for shoppers, or increased overseas sales for businesses. The UK Government is proving time and again that we can deliver on our mission to grow the economy, put more money in pockets and boost living standards under our Plan for Change.”

Workers in Scotland will enjoy an uplift in pay as UK wages grow by £2.2 billion each year, and could also see cheaper prices and more choice on clothes, shoes, and food products. The UK already imports £11 billion in goods from India but liberalised tariffs on Indian goods will make it easier and cheaper to buy their best products. For businesses in Scotland this could mean potential savings when importing components and materials used in areas such as advanced manufacturing or luxury and consumer goods.

Aligned with the UK’s recent Industrial and Trade Strategies, the deal will support the sectors which drive the most growth for the economy. Scotland’s thriving life sciences and health tech hubs, for instance, will be strengthened by IP commitments on areas such as trade secrets and copyright, helping companies export to India with confidence.

Mark Kent, Chief Executive of the SWA said:

“The Scotch Whisky industry has long championed a free trade agreement between the UK and India. The signing of the FTA is an historic moment and is an important milestone to reducing tariffs on Scotch Whisky in a growing market. This will contribute to the government’s growth objective, by laying the foundations for further investment and jobs.”

Jean-Etienne Gourgues, Chivas Brothers Chairman and CEO, said:

“Signature of the UK-India FTA is a sign of hope in challenging times for the spirits industry. India is the world’s biggest whisky market by volume and greater access will be an eventual game changer for the export of our Scotch whisky brands, such as Chivas Regal and Ballantine’s.

“The deal will support long term investment and jobs in our distilleries in Speyside and our bottling plant at Kilmalid and help deliver growth in both Scotland and India over the next decade. Let’s hope that both governments will move quickly to ratification so business can get to work implementing the deal!”