How the UK–India trade deal opens door in the Scotch whisky industry

Euan Duncan, a Partner at law firm Morton Fraser MacRoberts, on how the UK–India trade deal will affect Scottish whisky and the importance of geographical indication.

The UK–India trade deal has been billed as a landmark moment for Scottish exporters – and for whisky, it opens the door to a market with huge commercial promise. 

Tariffs, long one of the biggest obstacles to growth in India, are set to fall dramatically. For Scotch whisky, that means a 150% duty will be halved, then gradually reduced to 40% over the next decade.

But while the tariff reduction is very welcome, Scotch Whisky producers looking to expand in India need more than just a favourable trade agreement. They need clear and carefully constructed import, agency and distribution agreements that reflect how the local market operates – not how they might hope it will.

These agreements play a crucial role in protecting the integrity of the product once it leaves Scotland. They determine who controls how Scotch Whisky is sold, priced and promoted, and they help manage the practical risks that come with enforcement, brand misrepresentation and intellectual property disputes.

In India, the market is dominated by India Manufactured Foreign Liquor (IMFL) spirits, which are often made from molasses and frequently carry names that mimic the sound and feel of Scotch Whisky – such as ‘Bonnie Scot’ or ‘Highland Chief.’

Such branding blurs consumer understanding, erodes trust in the category and chips away at the value carefully built into the Scotch Whisky name. Geographical indication (GI) protection is what gives producers the legal tools to fight back. It defines what can – and crucially, cannot – be called Scotch Whisky, based on ingredients, process and place.

Although Scotch Whisky has consistently been highlighted as a UK priority in trade discussions – and reports confirm that GI protections were part of the UK’s negotiating position – no public confirmation has yet been made that this legal recognition forms part of the final agreement. Without GI recognition, the deal removes financial barriers – but leaves legal vulnerabilities wide open.

Of course, the tariff cuts are still a major win. They open up price access to India – a vast, fast-growing market with rising appetite for premium products. But opportunity on paper does not always translate to security in practice if the right protections are not secured.

In a market where lookalike products already dominate shelf space, contracts like those mentioned are not just commercial necessities – they are essential safeguards. Without them, even a product as well-established as Scotch Whisky can lose ground, especially when legal protections like GI status, brand usage and protection and market restrictions remain incomplete or undefined.

The India deal is a very welcome step forward. But if Scotch Whisky is to thrive in one of the world’s most dynamic spirits markets, the foundations need to be stronger and that means pressing for formal GI status and building smart, resilient commercial frameworks around it.

In global trade, tariff relief helps get you through the door but it’s what happens after that, how you protect what makes your product distinctive, that determines whether you succeed.

Read more Whisky news here.

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