On May 6, 2025, the United Kingdom and India finalised a historic free trade agreement (FTA), marking the UK’s most significant trade deal since Brexit. This landmark pact is projected to boost the UK economy by £4.8 billion and increase bilateral trade by £25.5 billion in the long term.
Key Highlights of the Deal
• Tariff Reductions: India will reduce tariffs on 90% of British goods, with 85% becoming tariff-free within a decade. Notably, tariffs on Scotch whisky and gin will decrease from 150% to 75%, eventually dropping to 40% over ten years. Automotive tariffs will fall from over 100% to 10% under a quota system.
Vintage Acquisitions’ Role in Whisky Trade Discussions
Since 2023, Vintage Acquisitions and the Vintage Whisky Group have actively participated in roundtable discussions at the Houses of Parliament concerning the UK-India trade deal’s impact on the global whisky market. These discussions included senior parliamentarians, representatives from the Department for Business & Trade, the UK India Business Council, Scottish distillery directors and industry leaders like Pernod Ricard.
The focus was on complex issues such as tax implications for whisky producers and consumers, whisky tourism, supply chain challenges, and employment and immigration matters. With India consuming 50% of the world’s whisky production yet only 2% being Scotch whisky, the reduction in tariffs is expected to significantly boost Scotch whisky exports to India.
Conclusion
The UK-India free trade agreement represents a significant milestone in international trade relations, promising economic growth and increased cultural exchange. The active involvement of industry stakeholders like Vintage Acquisitions underscores the importance of collaborative efforts in shaping trade policies that benefit diverse sectors.
“Following a surge in enquiries sparked by this exciting development, opportunities to establish your foundation or enhance your portfolio may become limited.”
For more information on Vintage Acquisitions’ involvement in the UK-India trade deal discussions, contact your account manager or fill in the form below.
