Why Is Scotch Whisky In Spotlight As UK PM Visits India?

As part of his trade mission, Starmer is accompanied by members of the Scotch Whisky Association (SWA) and producers eager to tap into India’s massive consumer base.

The trade deal with India is a milestone for Scotland, especially for whisky sector.

Source : Freepik

British Prime Minister Keir Starmer began his two-day visit to India on Wednesday with one of the UK’s most iconic exports, Scotch whisky, taking centre stage. The liquor industry is being billed as a major beneficiary of the India–UK Free Trade Agreement (FTA), which London projects could boost Scotland’s economy by £190 million annually.

As part of his trade mission, Starmer is accompanied by members of the Scotch Whisky Association (SWA) and producers eager to tap into India’s massive consumer base. According to Downing Street, the FTA could unlock whisky sales worth up to £1 billion a year, supporting over 1,000 new jobs across the UK.

Starmers' First India Visit As UK PM 

Starmer’s first India visit as Prime Minister includes key meetings with senior Indian ministers and business leaders aimed at strengthening trade, investment, and diplomatic ties.

“The trade deal with India is a milestone for Scotland, especially for our whisky sector. Our focus now is on ensuring its successful implementation,” said Douglas Alexander, UK Secretary of State for Scotland.

Leading the mission, Starmer is expected to “beat the drum for Scotland’s finest products,” Alexander added, saying the government’s backing will help Scottish exports expand globally.

Under the Comprehensive Economic and Trade Agreement (CETA), the formal name for the FTA, India will substantially reduce import tariffs on Scotch whisky once the deal clears the UK Parliament next year.

“Lowering tariffs will open up access to the world’s largest whisky market and offer greater choice to Indian consumers,” said Mark Kent, Chief Executive of the SWA. “It’s a clear example of government and industry working together for long-term growth.”

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The UK government also highlighted that the “landmark” pact, finalised during Prime Minister Narendra Modi’s UK visit in July, will benefit other Scottish exports such as shortbread and the popular soft drink Irn Bru.

“This agreement could transform the Scotch industry over time. Our trade mission aims to seize the full potential of this deal for Scotland,” Alexander said.

Starmer is joined by Business and Trade Secretary Peter Kyle and Investment Minister Lord Jason Stockwood, with discussions focusing on implementing CETA. According to official estimates, the deal could increase bilateral trade by £25.5 billion, raise the UK’s GDP by £4.8 billion, and boost wages by £2.2 billion annually in the long term.