Starmer's first India visit puts spotlight on Scotch whisky as industry eyes £1bn boost

British Prime Minister Keir Starmer is on a two-day visit to India starting Wednesday, marking the start of his first visit to India since taking over the as UK PM in 2024. He is scheduled to meet PM Narendra Modi on Thursday. This meeting follows the historic Free Trade Agreement signed between India and the UK in July.

The India-UK Free Trade Agreement (FTA) is set to open significant opportunities for the Scotch whisky industry, which is expected to be a major beneficiary. The UK government projects the deal will boost Scotland’s economy by £190 million annually.

Downing Street confirmed that members of the Scotch Whisky Association will join Starmer’s trade mission, aiming to explore a potential increase in whisky sales to India worth an estimated £1 billion a year. This is expected to create more than 1,000 new jobs across the UK.

Starmer’s first trip to India as Prime Minister will also include high-level meetings with senior Indian government ministers and business leaders to strengthen bilateral trade and diplomatic ties that will benefit the entire UK.

Douglas Alexander, UK Secretary of State for Scotland, said: “The historic trade deal the UK government struck with India this year is great news for Scotland and especially our whisky industry; but having secured the deal, our challenge and responsibility now is to put this deal into action.” He added that the Prime Minister will actively promote Scotland’s products and help them expand into global markets.

Trade benefits and industry impact

Under the India-UK Comprehensive Economic and Trade Agreement (CETA), Indian import tariffs on Scotch whisky will be significantly reduced once the agreement is ratified by the British Parliament next year. Mark Kent, Chief Executive of the Scotch Whisky Association, said the move would open access to what he described as “the world’s largest whisky market” and offer greater choice to Indian consumers.

The UK government has stressed that the landmark CETA, signed during Prime Minister Narendra Modi’s UK visit in July, will create benefits across the country, including for other iconic Scottish products such as shortbread and Irn Bru. Officials project the agreement will increase bilateral trade by £25.5 billion, raise UK GDP by £4.8 billion, and boost wages by £2.2 billion annually over the long term.

Trade and business ministers, including Peter Kyle and Lord Jason Stockwood, will accompany Starmer to India, with a focus on implementing the CETA and maximising its opportunities for Scotland and the wider UK.