UK–India Trade Deal Poised to Boost Scottish Economy by £190 Million a Year

A Prime Minister-led trade mission to India this week aims to spotlight the benefits of the landmark UK–India Free Trade Agreement, with a special focus on opportunities for Scottish industries. The deal is projected to add £190 million annually to Scotland’s economy, delivering one of the most significant trade boosts in recent years.

Scotch Whisky the Big Winner

Among the clearest beneficiaries is Scotland’s world-renowned Scotch whisky industry, which stands to gain unprecedented access to the Indian market. Under the agreement, India—the world’s largest whisky-consuming nation—will slash import tariffs on Scotch, paving the way for an estimated £1 billion surge in annual sales and an expanded market share.

UK officials have hailed the arrangement as the best trade deal any nation has ever secured with India, the world’s fourth-largest economy.

Strengthening Scotland–India Trade Ties

Leading the delegation, Scottish Secretary Douglas Alexander and representatives of the whisky industry are joining the Prime Minister’s trade mission to press home the advantages of the deal. The trip will include high-level meetings with Indian government ministers and business leaders to deepen bilateral trade and diplomatic relations.

“The historic trade deal the UK Government struck with India this year is great news for Scotland and especially our whisky industry,” Alexander said. “But having secured the deal, our challenge and responsibility now is to put this deal into action. That requires implementation by both governments, and utilization by British and Indian businesses.”

Alexander added that the Prime Minister’s visit would “beat the drum for Scotland’s finest products,” showcasing how UK Government backing can make Scottish exports more globally competitive.

From Trade Policy to Scotch Success

Before taking on his current role, Alexander served as Trade Policy Minister in the Department of Business and Trade, helping to secure not only the UK–India deal but also key trade agreements with the United States and the European Union.

“Over the last year, as Trade Minister, I’ve worked closely with the Scotch Whisky Association and other Scottish businesses,” he said. “I understand the challenges they face, and this deal with India could be transformative for the industry over the long term. On this trade mission, we’ll be looking to take full advantage of the opportunities it brings for Scotland.”

Industry Reaction

Mark Kent, Chief Executive of the Scotch Whisky Association, praised the deal as a game-changer for the industry’s global reach.

“We’re delighted to join this visit following the UK Government’s efforts to secure the UK–India Free Trade Agreement and look forward to its swift and smooth implementation,” Kent said. “Delivering liberalized tariffs on all our exports to India will open up access to the world’s largest whisky market in the years to come and give greater choice to Indian consumers.”

A Broader UK Delegation

Alongside the Prime Minister and Secretary Alexander, the UK delegation includes Business and Trade Secretary Peter Kyle and Investment Minister Lord Jason Stockwood, who will participate in meetings across New Delhi and Mumbai.

The mission is expected to serve as a blueprint for how the UK can leverage post-Brexit trade policy to strengthen economic ties with fast-growing global markets — with Scotland’s distillers leading the charge.