India excludes British Wine from tariff cut under FTA

India will not cut import duties on British wines and will provide only limited tariff relief on UK beer under the Free Trade Agreement (FTA) concluded with the United Kingdom on 6^th  May, a government official confirmed.

The FTA excludes several sensitive agricultural products such as dairy, apples, cheese, oats, and edible oils from tariff reductions. The deal does, however, reduce duties on British Scotch whisky and cars and grants concessions on Indian exports like garments and leather goods. Import duties on UK whisky and gin will be gradually reduced from 150 percent to 75percent, and later to 40 percent over ten years.

The exclusion of British wine is a strategic decision aimed at avoiding similar demands from the European Union, which is in advanced FTA talks with India. Officials stated that the gradual reduction of duties on Scotch will not significantly affect Indian whisky producers due to the low volume of imports. Though negotiations began in 2022, the FTA will take over 15 months to come into effect, with legal vetting underway. The text may be made public by August-September, and ratification in the UK Parliament will follow, likely delaying implementation until 2026.