India-UK Trade Pact: A Win-Win for Whisky and Beyond

The India-UK Free Trade Agreement is set to boost India's exports, particularly in consumer goods and services. It includes tariff reductions on Scotch whisky, benefiting UK brands, while enhancing India's access to the UK market. The pact also promotes professional mobility through a landmark social security deal.

The new Free Trade Agreement (FTA) between India and the UK aims to boost exports from India to the UK, targeting sectors like consumer goods, cosmetics, and apparel. This move is expected to significantly benefit the UK-based Scotch whisky brands due to a sharp reduction in import tariffs.

According to Anand Ramanathan of Deloitte India, the agreement provides an opportunity for both established and new whisky producers to broaden their market in India. Aditi Nayar from ICRA highlighted that India's trade surplus with the UK has seen marginal growth over the past decade, and the FTA is poised to enhance bilateral trade relations.

Notably, the FTA includes major commitments in services trade, benefiting Indian sectors such as IT, financial services, and professional services while easing worker mobility and social security obligations. This pact, as per experts, reflects the increasing need for portable social protection in today's global economy.

(With inputs from agencies.)