Industry leaders welcome UK-India multi-billion-pound trade deal
7th May 2025
British meat and drinks industries have welcomed the multi-billion-pound trade deal that has just been announced between the UK and India.
The UK government has called the trade deal a “huge economic win”, as it is set to be beneficial for working people and British businesses.
The deal will slash Indian tariffs on key products such as whisky, cosmetics and medical devices, locking in reductions on 90% of tariff lines for UK exports to unleash opportunities for businesses across regions and nations of the UK, the Department for Business and Trade explained.
Whisky and gin tariffs will be halved from 150% to 75% before reducing to 40% by year ten of the deal, while automotive tariffs will go from over 100% to 10% under a quota.
Other goods with reduced tariffs, which can open markets and make trade cheaper for businesses and Indian consumers, include cosmetics, aerospace, lamb, medical devices, salmon, electrical machinery, soft drinks, chocolate and biscuits.
British shoppers could see cheaper prices and more choice on products including clothes, footwear, and food products including frozen prawns as the UK liberalises tariffs, the government claims.
The deal is expected to increase bilateral trade by £25.5 billion, UK GDP by £4.8 billion and wages by £2.2 billion each year in the long run.
The department has also said that UK businesses will gain a competitive edge over international competitors when entering India’s enormous market as it gets even bigger, forecasted to become the third-largest global economy within three years.
‘Positive step in the right direction’
The Association of Independent Meat Suppliers has welcomed the agreement and explained that British lamb producers will be one of the businesses that will benefit from it.
Tony Goodger, AIMS’ head of communications, said: “This is excellent news for AIMS’s lamb processing members.
“Be it our premium brands such as Welsh PGI Lamb and Scotch PGI Lamb for the rapidly growing middle class or our high-quality assured Halal lamb for India’s 200 million Muslim consumers, the UK has a great opportunity in this market.
“We will be seeking clarification from DBT over the coming days as to whether pork and pet food, both of which have active export health certificates in place, are likely to see similar tariff easements over time.”
William Wemyss, managing director of Wemyss Family Spirits, which counts Kingsbarns Distillery near St Andrews, as well as Darnley’s Gin and Wemyss Malts among its brands, said that India has long been seen as the single most exciting growth market for Scotch.
“It’s home to the largest population of whisky drinkers in the world, yet until now, punitive tariffs of 150% have held us back. For years, whisky producers like us have been locked out of meaningful access despite strong demand and growing appreciation for high-quality spirits.
“The phased reduction of tariffs, from an immediate cut from 150% to 75%, with a target of 40% over the next decade, changes everything. It finally gives us a fairer footing to compete in a market that has been out of reach for too long.”
Mr Wemyss added that this new trade deal could open the door to sustained investment, new partnerships, and long-term growth for distilleries across Scotland.
“It’s a positive and pragmatic step in the right direction, and one that we hope will be implemented swiftly and effectively.
“We welcome the agreement and remain committed to bringing our whisky to new audiences around the world, sharing a product that’s proudly Scottish but globally loved,” he concluded.
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