UK-India trade deal delivers £190 million to boost for Scotland

The UK and India trade deal is expected to deliver a significant economic boost for Scotland, with new analysis revealing that the agreement will bring in £190 million to the Scottish economy

The UK-India trade deal is part of the UK Government’s broader Plan for Change and can be expected to create new opportunities for businesses and workers across Scotland.

One of the primary outcomes of the deal is the immediate reduction of India’s high tariffs on Scotch whisky. The import tax will drop from 150% to 75% straight away, and is expected to fall even further to 40% over the next ten years.

This change is expected to increase the affordability and demand for Scotch whisky in India, which is already the world’s largest whisky market by volume.

The UK-India trade deal also benefits Scotland’s soft drinks sector, with tariffs on these beverages set to decrease gradually from 33% to 0%. This change sets the way for a broader range of Scottish drinks products to find new customers in the Indian market.

Trade opportunities

Scotland already exports over £600 million worth of goods to India each year, with 457 businesses currently trading with the country. The new trade agreement is expected to eliminate many existing trade barriers, streamline customs processes, and facilitate easier market access. These improvements could significantly increase the volume and value of Scottish exports to India.

Sectors set to benefit include food and drink, textiles, clean energy, advanced manufacturing, life sciences, and financial services. The removal or reduction of tariffs will make Scottish goods more competitive in the Indian market, which is on track to become the world’s third-largest economy by 2027.

Boost for jobs, wages, and investment

The UK-India trade deal is also expected to have a positive impact on employment and wages across Scotland. UK-wide, the agreement could result in an annual wage increase of £2.2 billion, with Scottish workers likely to benefit the most. Local communities may also see new job opportunities, particularly in export-driven industries such as whisky production, advanced manufacturing, and technology.

Increased trade is also likely to attract new inward investment to Scotland, supporting business growth and improving living standards. The UK Government’s strategy is focused on using UK-India trade deals like this to support long-term economic development across the country.

Business and Trade Secretary Jonathan Reynolds 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.”

Supporting innovation and high-growth industries

The UK-India trade deal also includes commitments that will support Scotland’s innovative sectors. The agreement strengthens protections for intellectual property, including trade secrets and copyright, which will help Scottish life sciences and health tech firms export their products and services with greater confidence.

These commitments are aligned with the UK’s Industrial and Trade Strategies, which aim to grow sectors that deliver the most value to the economy.

Next steps for implementation

The agreement was officially signed on 24 July, following a meeting between the UK Prime Minister and India’s Prime Minister Narendra Modi. Business and trade ministers from both countries also formalised the deal, marking a significant step in UK-India relations.

With the agreement now signed, both governments will move forward with ratification and implementation. Businesses across Scotland are preparing to capitalise on the new opportunities as soon as the deal takes effect.