In a move set to redefine shopping baskets and bar shelves across India, a new free trade agreement (FTA) signed between India and the United Kingdom on Monday will sharply reduce import duties on a wide range of British goods, from luxury cars and premium liquor to cosmetics and high-end electronics.
Front and centre of the deal is a dramatic cut in tariffs on imported Scotch whisky and gin. Currently taxed at a punishing 150%, the duties will immediately drop to 75%, and gradually fall to 40% over the next 10 years. For Indian consumers, that means bottles of Glenfiddich, Johnnie Walker, The Macallan, Tanqueray, and Bombay Sapphire could soon be hundreds, if not thousands, of rupees cheaper.
“The tariff reduction could bring down retail prices of premium UK spirits by 20-25% in the short term,” said an executive from a leading alco-bev importer. That’s welcome news for India’s rapidly growing base of urban millennials and premium spirit enthusiasts.
But it’s not just spirits getting cheaper. British luxury cars such as Jaguar, Land Rover, Mini Cooper, and Aston Martin, long handicapped by steep 100% import duties, will see those tariffs slashed to just 10% under a quota-based system. That could shave lakhs off showroom prices and give Indian auto buyers a more accessible path to aspirational UK-made vehicles.
British FMCG brands are also set to benefit. Imports of Marks & Spencer products, The Body Shop skincare, and Cadbury’s premium lines are expected to become more affordable as tariffs ease on processed food, cosmetics, and packaged goods. Retail analysts say this could help UK brands expand their footprint in India, where affordability has long been the barrier to market penetration. Indian exporters aren’t left out either. The FTA opens doors for Indian textiles, toys, leather, and jewellery brands to gain preferential access to the UK market. Brands stand to benefit as tariff barriers ease and global demand diversifies away from China.
The broader backdrop: with India-UK bilateral trade already at $60 billion and projected to double by 2030, this agreement gives both economies a consumer-focused edge at a time when global tariffs are rising elsewhere, most notably in the U.S., where new duties on foreign media and goods have stoked trade tensions. For Indian shoppers, the effects could soon show up on shelves, from duty-free stores to high-street retail. Whether it’s a cheaper bottle of Glenlivet or a more attainable Jaguar, the biggest winner from this trade pact may be the Indian consumer.