FTA July 2025 | Ambrosia India

It features interesting articles like:

· Iswai, Scotch Whisky Association and industry call FTA ‘a game-changer’

· Taxes could affect Indian alcobev industry

· Tilaknagar Industries to acquire Imperial Blue from Pernod Ricard India

· Abhishek Modi works off his own manual. And that’s exactly why Rockford works.

Will the FTA Reshape India’s Alcobev Future

History was made this July as India and the United Kingdom finally signed their long-negotiated Free Trade Agreement, marking a seismic shift in global alcobev dynamics. For the first time, Scotch whisky, British gin, Bottled-in-Origin (BIO) and bulk imports which are used for making Bottled in India (BIO) products as well as blending with IMFL will enjoy sharply reduced tariffs when entering India – dropping immediately from 150% to 75%, with a gradual reduction to 40% over the next decade. ISWAI calls this more than just a trade pact – for them and international makers – it’s a signal that India’s alcohol market is being redefined.

Now, India is already the world’s largest whisky consumer and the premium segment is growing rapidly. With rising disposable incomes, greater urbanisation and a young, curious consumer base, the country’s alcobev market is poised for robust growth all the way to 2035. This FTA could be the accelerator that not only opens the doors for premium global spirits but also nudges Indian producers to innovate and compete on even greater quality and branding.

While the effects of the FTA may be most visible in the shelves of India’s premium retail outlets and luxury hotel bars, its real impact is expected to be long-term. For consumers, the availability of aged Scotch whiskies at marginally lower price points will elevate the drinking experience. For Indian spirits companies, the competition will push them to rethink strategy, invest in premiumisation and perhaps even explore global exports with more urgency.

And this couldn’t have come at a better time for the global beverage alcohol industry. 2024 was a tepid year for Total Beverage Alcohol (TBA) volumes across traditional markets, many of which were weighed down by inflation and geopolitical uncertainty. For global alcobev giants, developing markets like India now represent the future – dynamic, untapped and increasingly premium.

Meanwhile, the Scotch whisky industry continues to raise its own bar. In 2024, global exports touched a record £5.4 billion. With India’s tariff barriers easing, the country could soon become one of the top value markets for Scotch, not just by volume but in prestige and premiumisation too.

The bottom line: This FTA is not just about bottles crossing borders – it’s may be about cultures converging, markets maturing and possibly a shared opportunity to shape the next era of premium spirits.

India and the UK signed a landmark free trade agreement (FTA) on July 24^th with the aim to improve market access and boost bilateral trade by around $34 billion annually. The agreement was signed in the presence of Prime Minister Narendra Modi and his British counterpart, Keir Starmer. The agreement was signed by the Indian Commerce Minister, Piyush Goyal and his counterpart Jonathan Reynolds.

The trade deal, finalised after three years of negotiations, is expected to benefit 99% of Indian exports from tariffs and streamline the export process for British companies exporting Scotch whisky, cars and other products to India. This will also help expand the overall trade basket.

The deal is expected to increase bilateral trade by $34 billion annually, making it the most significant trade pact for the UK since leaving the European Union and the most comprehensive one India has signed. Items like the world-famous Scotch whisky, British-made cars, cosmetics and medical devices are among many other products that will become cheaper in India as the nation’s decide to lower the tariff rates.

‘Britain is open for business’ said Starmer and added ‘It is a deal that will bring huge benefits to both of our countries, boosting wages, raising living standards and putting more money in the pockets of working people. It is good for jobs, it is good for business, cutting tariffs and making trade cheaper, quicker and easier.’

He announced GBP 6 billion in investment and export between India and the UK which is expected to create more than 2,200 jobs for British workers.

India’s average tariff on UK products will drop from 15% to 3% which means British companies selling products to India from soft drinks and cosmetics to cars and medical devices will find it easier to sell to the Indian market.

Whisky producers will benefit from tariffs slashed in half, reduced immediately from 150% to 75% and then dropped even further to 40% over the next ten years – giving the UK an advantage over international competitors in reaching the Indian market, he said.

Prime Minister Modi said “This agreement is not merely an economic partnership, but a plan for shared prosperity,” adding that the UK trade agreement ensures better market access for Indian textiles, footwear, gems and jewellery, seafood and engineering goods.

“I am delighted that after many years of hard work, a Comprehensive Economic and Trade Agreement has been concluded between our two countries today,” he added.

Tag Archives: FTA July 2025

India and the UK sign landmark FTA