India-UK FTA: No import duty cut for British wine, limited concession on beer

India will not offer any import duty concessions on British wines and is providing only limited duty relief on UK beer under the recently concluded Free Trade Agreement (FTA) with the United Kingdom, a government official confirmed.

Several other sensitive agricultural products, including dairy, apples, cheese, oats, and edible oils, have also been excluded from tariff reductions under the May 6 pact.

“Wine is on the exclusion list, along with several other agricultural products in the trade pact. We are also offering only a limited duty concession on British beer,” the official said.

The deal, which will reduce import duties on British Scotch whisky and cars, also includes duty cuts on Indian exports such as garments and leather products. Under the FTA, India has committed to reducing duties on UK whisky and gin from 150% to 75%, and further to 40% over a ten-year period.

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The decision to keep British wines out of the deal is seen as a strategic move, as any concessions could trigger similar demands from the European Union—currently in advanced FTA negotiations with India.

Keywords: India UK FTA, British wine import duty, beer duty concession, agricultural products, EU trade talks, Scotch whisky tariffs, India-UK trade deal

Allaying concerns of Indian whiskey players, the official said the import duty cuts granted to Scotch whiskey under the pact will not significantly impact the domestic market, as the reduction will be implemented gradually over a 10-year period and the imports are also low.

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Though the two countries have announced the conclusion of talks, which started in 2022, it would take over 15 months for the FTA to come into force.

At present, both sides are undertaking legal scrubbing (vetting by lawyers) of the text and after that it will be signed and put in public domain.

”Maybe by August-September, the text would be made public,” another official said.

After signing, the ratification process of the FTA would take another year in the UK’s Parliament and only after that the pact would be ready for implementation.

With inputs from agencies