Scotch whisky central to Britain’s India free trade plan

Prime Minister Theresa May begins her three-day visit to India from Sunday, the government has announced that Scotch whisky will be one of the key items targeted in a free trade deal after the industry recorded a 41 per cent rise in exports to India.

The Scotch whisky industry has been pressing for lowering steep import tariff in India, which is one of its top three export markets. Talks on a free trade deal are top of May’s agenda during her visit to India, as she prepares to negotiate Britain’s exit from the European Union.

India is highlighted in the May government’s recently launched UK Food and Drink International Action Plan for its export potential; the ambition is to gain £349 million in food and drink export wins in the country over the next five years.

Environment secretary Andrea Leadsom highlighted India’s export potential during a visit to Scotland this week, using the Edinburgh-based Scotch Whisky Association’s September figures that showed the volume of 70cl bottles exported to India between January and June 2016 jumped to 41 million from 29.1 million in the same period in 2015.

It was the highest percentage rise in Scotch whisky exports in its top 20 markets during the period, with Japan registering the second largest growth of 20 per cent, the SWA said.

“The growth of exports to India stood out, with value up 28% to £43 million. The SWA argued that the full potential of the Indian market would only be delivered through liberalisation of the exorbitant 150% basic customs duty, urging the UK Government to prioritise discussions with India as it develops its postBrexit trade priorities”, it said.

A free trade deal with India is not possible until Britain formally leaves the EU, expected in 2019, but May government has already started talks towards signing such an agreement.