Partner content: A world of opportunity in India for Scotland’s premium beverage sector

The eagerly awaited UK-India Free Trade Agreement (FTA) was signed last year and is due to come into force imminently, bringing with it major opportunities for Scottish exporters.

The premium beverage sector, most notably Scotch whisky, is set to reap the rewards from a reduction in the 150% tariff currently placed on the export of Scotland’s national drink to India. The whisky tariff will initially be cut to 75% and further reduced to 40% as a result of the deal which has been hailed as “transformational”.

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India is a growing market for Scottish premium drink exporters | mds0 - stock.adobe.com

India is already a hugely important market for Scotland's premium beverages. It is the biggest market by volume for Scotch, with exports reaching 220 million 70cl bottles last year, up 15% on 2024. And it is the third largest market by value, worth £286m in 2025, up 15% on the previous year. The tariff reduction will make whisky more affordable for a larger proportion of the Indian population. The Scotch Whisky Association chief executive Mark Kent described the FTA as a “once in a generation deal and a landmark moment”.

On Wednesday 13th May, Dentons, the world’s largest global law firm and DP World, a leader in global supply chain solutions, in association with The Scotsman, will host an event that takes a deep dive into the potential impact of the trade deal on the premium beverage sector and its supply chain.

At the 'Premium Beverages: Unlocking Opportunities from the UK-India FTA' event in Edinburgh, attendees will hear from a range of expert speakers, followed by a panel session, Q&A and a networking reception.

Adam Knowles, Partner and UK Head of Food and Drink for Dentons, explains how his firm is ideally placed to discuss the UK-India trade deal with premium beverage businesses. He says: “We have a rich history of advising in the sector. We work with a number of longstanding clients, such as Edrington and Bacardi, and more recently with new entrants, including Isle of Harris, Nc'nean and Holyrood.

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Adam Knowles | Supplied

“We also have extensive experience of advising parties throughout the supply chain, particularly on packaging. Our experience of advising distillers and brand owners is full service, covering such areas as fund raising, construction of distilleries and global trading arrangements.”

On the Indian market, Stephen Whittingham, Chief Operating Officer, Freight Forwarding Europe, at DP World comments: “India’s rise as one of the world’s fastest-growing major economies has long captured the attention of Scottish businesses. With a population of more than 1.4 billion, a rapidly expanding middle class and sustained public investment in infrastructure and manufacturing, the country is often described as the next great export opportunity.

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Stephen Whittingham | Supplied

“Yet for many Scottish firms, especially small and medium-sized exporters, the challenge has never been demand. It has always been access.”

Dan Lund, Partner and Global Head of Trade at Dentons, adds: “Scotch whisky has been steadily increasing its market share year on year, notwithstanding the historically high tariffs. There is understandable excitement across the industry about the opportunity to grow that faster as the tariffs are lowered. We know distillers are in the early stages of working out how to capitalise on the opportunity so we're excited to be able to help clients work out how best to do this.”

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Dan Lund | Supplied

Explaining the challenges faced by companies wanting to trade with India, Stephen says: “India is a prize market for Scottish exporters but complexity is the price of entry.

“The primary obstacle is not distance or culture, but regulation. India’s import system is complex, layered and evolving.

“India is one country in theory, many markets in practice. Clearing customs is only the first step. India is often described as a single market, but in practice it functions as a federation of distinct economic jurisdictions.”

Dan echoes the view that exporters currently have a number of hurdles to jump to gain access to the Indian market. “Despite the existing success, India is a difficult market to enter. It is geographically huge, containing 28 states with differing laws, tariffs and cultural differences. Combine that with the issues on the export side, where distillers and others in the food and beverage sector are still finding their feet post-Brexit, it makes for a challenging landscape, even for those businesses blessed with export and legal teams.”

Exporters looking to trade in India face a range of legal complexities and compliance requirements that they need to be aware of. As Anuj Trivedi, Partner at Dentons Link Legal in India, explains: “The Indian legal regime governing alcohol is marked by a complex interplay of constitutional principles, state-specific legislation, and regulatory frameworks.

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Anuj Trivedi | Supplied

“Unlike many jurisdictions where alcohol laws are centralised, in India the subject falls within the domain of the States under the Constitution, resulting in a patchwork of divergent rules on manufacture, distribution, sale, and consumption. This fragmented landscape creates significant compliance challenges for businesses, as they must navigate not only licensing requirements and excise duties but also varying restrictions on advertising, labeling, and retail practices.

“The legal intricacies are further compounded by the socio-political sensitivities surrounding alcohol, making it imperative for stakeholders to approach the sector with both caution and a nuanced understanding of the regulatory environment.”

With the advent of the UK-India Trade deal, which will help tackle some of the challenges, both DP World and Dentons are ready to work with Scottish exporters of all sizes as the prized market opens up to them.

Adam explains that Dentons was one of the first international law firms to open in India following its combination with Link Legal in 2023. “Like our UK team, the Dentons Link Legal team has a long history in advising global food and beverage clients which has presented us with a number of exciting opportunities to work together to advise clients in the sector,” he says. “By utilising our teams in both countries who focus on trade, sanctions and commercial arrangements, we are able to offer clients looking at entering the India market genuine in-depth experience.

“If you then combine that with our wider practice advising clients in the US market, particularly bourbon producers from Kentucky and beyond, this is a unique offering to help clients efficiently enter new territories and drive their expansion.”

Meanwhile, DP World says that, as a global logistics and infrastructure leader, it has become increasingly central to international trade flows between the UK and India. “Our role goes well beyond moving goods from port to port. Instead, we offer a unique, market access capability, bridging between exporters and India’s administrative system, and supporting much of the legal and procedural burden that might otherwise deter market entry,” says Stephen.

On the reasons for organising the Edinburgh event, Adam says: “From working with the DP World team we immediately recognised that bringing together their logistical capabilities with our legal capabilities we could present clients with a single forum to hear how many of their issues with exporting to India could be resolved.”

Dan adds: “Attendees will hear about the scope of the opportunity available to them, how Dentons both in the UK and India will work together to resolve these issues and then have the opportunity to network with industry peers.”

There are limited spaces still available for members of the premium beverages industry in Scotland to attend the event on 13th May. If you would like to attend please email [email protected] by lunchtime on Friday 8 May to secure a place.

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