Tariffs on whisky being exported to India are set to be halved as part of a major trade deal between the UK and India. The agreement promises to deliver a significant boost to Scotland's economy and its world-famous whisky industry.
Sir Keir Starmer (Labour) will welcome his Indian counterpart Narendra Modi on Thursday to sign the deal. The agreement will see tariffs on whisky cut from 150% to 75%, with the potential to drop further to 40% over the next decade.
Scotland set for £190m boost
Tariffs on soft drinks will drop gradually from 33% to zero under the new arrangement. The UK Government has estimated the deal will deliver a £190 million boost specifically for Scotland.
Scottish Secretary Ian Murray said the agreement represents "great news for Scotland and Scottish jobs". He highlighted that Scottish goods, businesses and services will gain access to what is projected to be the world's third-largest economy by 2027.
Whisky industry celebrates breakthrough
Murray described the tariff cuts as potentially "transformational for the industry". He noted that the deal covers multiple sectors, from food, drink and textiles production to clean energy, advanced manufacturing, life sciences and financial services.
The Scottish Secretary emphasised that the agreement supports the UK Government's Plan for Change by bringing inward investment to Scotland. This investment aims to create jobs, boost economic growth and improve living standards across the UK.
Historic milestone for trade
Scotch Whisky Association chief executive Mark Kent said the industry had "long championed" a deal with India. He described the signing of the Free Trade Agreement as "an historic moment and an important milestone to reducing tariffs on Scotch whisky in a growing market".
Kent added that the deal will contribute to the Government's growth objective by laying the foundations for further investment and jobs. The agreement opens up significant opportunities in one of the world's fastest-growing economies for Scottish exporters.
(PA/London) Note: This article has been edited with the help of Artificial Intelligence.
