United Kingdom Prime Minister Keir Starmer arrived in Mumbai on Wednesday for his first official visit to India since taking office. His visit underscores the strengthening economic and trade ties between the two nations, with a special focus on the Scotch whisky industry — one of the major beneficiaries of the recently signed India-UK Free Trade Agreement (FTA).
The FTA, signed in July during Prime Minister Narendra Modi’s visit to London, aims to enhance bilateral trade by reducing tariffs and expanding market access. The agreement covers a wide range of products, including textiles, automobiles, and whisky. The UK government estimates the deal will contribute an additional £190 million annually to the Scottish economy.
As part of his trade mission, Starmer is accompanied by representatives from the Scotch Whisky Association and major industry players such as Diageo. The delegation will explore opportunities to expand Scotch whisky exports to India, which are projected to reach £1 billion annually and generate over 1,000 new jobs in the UK.
Under the new trade terms, India will progressively cut import tariffs on Scotch whisky from 150% to 75%, with a further reduction to 40% over the next decade. The move is expected to make premium Scotch brands more affordable for Indian consumers and significantly boost sales in one of the world’s largest whisky markets.
Scotch whisky has long held a strong foothold in India, with popular labels like Johnnie Walker, Chivas Regal, Buchanan’s, and Glenfiddich enjoying a loyal customer base.
According to Reuters, negotiations on the FTA concluded in May after three years of intermittent talks, which had been delayed by global trade tensions during former US President Donald Trump’s tenure. The pact is expected to increase bilateral trade between India and the UK by £25.5 billion (around $34 billion) by 2040.
During his visit, PM Starmer is also scheduled to meet senior members of Prime Minister Modi’s cabinet and leading Indian business figures to further deepen economic and diplomatic relations, reinforcing the partnership between the two nations.
