India has opted to exclude British wines from any import duty concessions and has extended only limited tariff relief on UK beer under the recently concluded Free Trade Agreement (FTA) with the United Kingdom, according to a senior government official.
The trade deal, finalized on May 6, also omits several sensitive agricultural items from tariff reductions. These include dairy products, apples, cheese, oats, as well as animal and vegetable oils, reflecting India’s cautious approach in safeguarding domestic interests.
“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 was quoted as saying by news agency PTI.
The agreement, which marks a significant milestone in bilateral economic ties, is expected to lower tariffs on British exports such as Scotch whisky and cars, while providing enhanced market access for Indian goods including garments and leather products in the UK.
As part of the deal, India will gradually reduce tariffs on UK-origin whisky and gin from the current 150 percent to 75 percent, and further down to 40 percent over a ten-year period.
Excluding wines from the tariff reduction list is seen as a strategic decision, given the European Union’s dominant presence in the wine sector. Offering such concessions to the UK could have triggered demands for similar treatment from the EU, with which India is currently engaged in advanced trade negotiations.
Addressing industry concerns, the official noted that domestic whiskey producers are unlikely to face immediate adverse effects from the reduced duties on Scotch, as the tariff cuts will be phased over a decade and current import volumes remain modest.
Although negotiations between India and the UK began in 2022 and have now concluded, the FTA is not expected to come into force for at least another 15 months. Both governments are currently engaged in a legal review process, commonly referred to as “legal scrubbing.”
“Maybe by August-September, the text would be made public,” another official stated.
Following this review, the agreement will require formal signing and ratification by the UK Parliament, a process that could take up to a year before implementation begins.
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