Businesses and workers in Scotland are set to benefit from the
UK's trade deal with India, as new analysis shows the landmark
agreement will deliver a £190 million boost for the Scottish
economy as part of the Plan for Change.
The deal is great news for Scotch producers, with Indian import
tariffs on whisky to fall from 150% to 75% immediately, dropping
even further to 40% within 10 years. Soft drink will also benefit
from tariffs cuts gradually from 33% to 0%.
The Prime Minister met his counterpart Narendra Modi on 24 July
for the trade deal signing as Business and Trade Secretary and Commerce Minister
Piyush Goyal put pen to paper on the landmark agreement. India is
an important market for Scotland, with 457 Scottish businesses
exporting a total of £610 million in goods there last year – this
could grow even more thanks to lower tariffs, fewer barriers to
trade, and easier customs.
Scottish Secretary said:
“This is great news for Scotland and Scottish jobs. Our trade
deal with India is fantastic news for Brand Scotland, with our
goods, businesses and services gaining access to what is
projected to be the world's third largest economy by
2027.
“From food, drink and textiles production, to clean energy,
advanced manufacturing, life sciences and financial services,
Scotland has so much to offer India.
“It's fantastic news in particular for world-famous whisky
industry, with Indian import tariffs slashed on Scotch having the
potential to be transformational for the industry. It's also good
news for our other national drink, with tariffs on soft drinks
cut.
“As the UK Government delivers our Plan for Change, we are also
bringing inward investment to Scotland to create jobs, boost
economic growth and improve living standards right across the
UK.”
Business and Trade Secretary said:
“The millions brought to Scotland each year from the deal we've
signed with India today will be keenly felt across local
communities, whether that's higher wages for workers, more choice
for shoppers, or increased overseas sales for businesses. The UK
Government is proving time and again that we can deliver on our
mission to grow the economy, put more money in pockets and boost
living standards under our Plan for Change.”
Workers in Scotland will enjoy an uplift in pay as UK wages grow
by £2.2 billion each year, and could also see cheaper prices and
more choice on clothes, shoes, and food products. The UK already
imports £11 billion in goods from India but liberalised tariffs
on Indian goods will make it easier and cheaper to buy their best
products. For businesses in Scotland this could mean potential
savings when importing components and materials used in areas
such as advanced manufacturing or luxury and consumer
goods.
Aligned with the UK's recent Industrial and Trade Strategies, the
deal will support the sectors which drive the most growth for the
economy. Scotland's thriving life sciences and health tech hubs,
for instance, will be strengthened by IP commitments on areas
such as trade secrets and copyright, helping companies export to
India with confidence.
Mark Kent, Chief Executive of the SWA said:
“The Scotch Whisky industry has long championed a free trade
agreement between the UK and India. The signing of the FTA is an
historic moment and is an important milestone to reducing tariffs
on Scotch Whisky in a growing market. This will contribute to the
government's growth objective, by laying the foundations for
further investment and jobs.”
Jean-Etienne Gourgues, Chivas Brothers Chairman and CEO,
said:
“Signature of the UK-India FTA is a sign of hope in challenging
times for the spirits industry. India is the world's biggest
whisky market by volume and greater access will be an eventual
game changer for the export of our Scotch whisky brands, such as
Chivas Regal and Ballantine's.
“The deal will support long term investment and jobs in our
distilleries in Speyside and our bottling plant at Kilmalid and
help deliver growth in both Scotland and India over the next
decade. Let's hope that both governments will move quickly to
ratification so business can get to work implementing the deal!”
