UK-India Whisky Trade Deal: Big News for Investors’ Whisky Returns

The United Kingdom and India have been negotiating a free-trade deal which would significantly lower or remove tariffs on UK exports of Scotch whisky to India. While the deal has yet to be finalised, economists see it as a potentially massive boon to the whisky industry, bolstering investors' whisky returns. Initially started under former Prime Minister Boris Johnson in 2022, the tariff discussions are expected to be treated with greater urgency with newly elected PM Rishi Sunak.

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The United Kingdom and India have been negotiating a free-trade deal which would significantly lower or remove tariffs on UK exports of Scotch whisky to India. While the deal has yet to be finalised, economists see it as a potentially massive boon to the whisky industry, bolstering investors’ whisky returns.

Initially started under former Prime Minister Boris Johnson in 2022, the tariff discussions are expected to be treated with greater urgency with newly elected PM Rishi Sunak.

The UK is reportedly seeking a reduction of tariffs to 30% from 150% over the next three years; in return, India is seeking easier entry for its domestic whisky products to the UK market and easier access to British visas for Indian citizens.

How The UK-India Trade Deal Could Affect Markets and Whisky Returns

The potential trade deal between the United Kingdom and India has been big news for the whisky industry, particularly for whisky producers. Under the reported terms of the deal, tariffs on whisky exports to India will be significantly reduced, which is expected to lead to an increase in demand for the popular spirit.

The reduced tariffs are great news for whisky producers, who have been looking for new opportunities to expand their markets and increase sales. India is one of the world’s largest and fastest-growing markets for alcohol, and the improved access to this market provided by the trade deal could be a major boost for the UK whisky industry.

Scotch whisky exports to India are worth around £40 million per year, but with the new trade deal, this number is expected to increase significantly. This increased demand will not only be good news for whisky producers, but could also potentially lead to higher consumer prices.

Mark Kent, Chief Executive of the Scotch Whisky Association, claims a new deal could grow exports to India by over £1bn over five years and improve Indian tax revenues—making it a “win-win for all.”

The reduced tariffs on whisky exports to India are not the only aspect of the trade deal that will benefit the whisky industry. The agreement also includes provisions for improved access for Indian whisky makers to the UK market. This could potentially lead to an increase in exports of Indian whisky to the UK, which would be a welcome development for consumers looking to try new and exciting spirits from around the world.

While domestic producers of whisky in India enjoy the protection provided by the current 150% tariff on imported UK whisky, a deal in which their ability to export more products to the UK would be beneficial. Diageo, India’s largest domestic producer, stands to gain substantially from a newly opened-up whisky market.

Overall, the trade deal between the UK and India is great news for the whisky industry. It will provide new opportunities for both Scotch and Indian whisky producers and is expected to increase demand for the popular spirit. This could potentially drive up consumer prices, but it will also provide a much-needed boost for the UK whisky industry.

Trade Deal’s Potential Effect on Whisky Returns: How Safe Is Whiskey Investment?

Is whiskey a good investment? Investment-grade whisky has recently become a major player in auction markets. With price tags on rare whisky bottles reaching upwards of five figures, the spirit has seen great interest as a unique asset class for investors.

Whisky lovers and teetotallers simply seeking a reliable long-term hold are leveraging the alternative investment vehicle to build their wealth—and the UK-India free trade deal promises to boost their whisky cask investment returns further.

Accessing Whisky Returns Through Cask Investment With Alto Whisky

While the investment cost and logistics of purchasing and storing single malt Scotch aren’t feasible for most, whisky investment companies such as Alto Whisky exist to bring whisky cask investment to clients worldwide.Hoping to invest in whisky casks? Luckily, there’s no need to rent a climate-controlled warehouse to store your investment. Clients from all walks of life can now access cask ownership regardless of their knowledge level. Investing in whisky for beginners is now more accessible than ever.
Offering expert advice from dedicated financial advisors, Alto allows investors to capitalize on market changes like the UK-India free trade deal through the growing whisky industry. Visit Alto Whisky to learn more about whisky investing and how you can begin your whisky cask ownership journey.