The agreement was announced today (6 May) by the Department for Business and Trade and will see the tariffs drop from 150% to 75%, before falling to 40% by the 10th year of the deal between the two nations.

Diageo chief executive, Debra Crew, said: “Today’s agreement is a huge achievement by Prime Ministers Modi and Starmer and Ministers Goyal and Reynolds, and all of us at Diageo toast their success. It will be transformational for Scotch and Scotland, while powering jobs and investment in both India and the UK. The deal will also increase quality and choice for discerning consumers across India, the world’s largest and most exciting whisky market.”

Mark Kent, chief executive of the Scotch Whisky Association (SWA), welcomed the deal, describing it as “transformational”.

“The UK-India free trade agreement is a once in a generation deal and a landmark moment for Scotch whisky to the world’s largest whisky market,” Kent added.

“The deal has the potential to increase Scotch whisky exports to India by £1bn over the next five years and create 1200 jobs across the UK. The deal is good for India too, boosting federal and state revenue by over £3bn annually, and giving discerning consumers in a highly educated whisky market far greater choice from SME Scotch whisky producers who will now have the opportunity to enter the market.

“This agreement shows that the UK government is making significant progress towards achieving its growth mission, and the negotiating teams on both sides deserve huge credit for their dedication. The Scotch whisky industry looks forward to working with the UK and Indian governments in the months ahead to implement the deal which would be a big boost to two major global economies during turbulent times,” Kent continued.