India-UK trade deal: Luxury cars get cheaper, but your Scotch will have to wait

British carmakers have moved quickly to pass on tariff benefits from the India-UK Comprehensive Economic and Trade Agreement (CETA), which came into effect on Wednesday, while price cuts on Scotch whisky and gin will take longer to reach consumers, according to a report by The Times of India by Aabhas Sharma & Sidhartha.

CETA was signed in London on 24 July 2025 and came into force on July 15, 2026, becoming the sixth free trade agreement implemented by the Narendra Modi government, following pacts with Mauritius, UAE, Australia, EFTA, and Oman.

Also read: India-UK FTA: Rolls-Royce, Range Rover cars to get cheaper by crores in India


The agreement covers 30 chapters spanning trade in goods and services, digital trade, government procurement, MSMEs, innovation, labour, environment and gender, and is expected to unlock duty-free access for nearly 99% of Indian exports.

The deal lowers tariffs across premium drinks including cider, mead, sake, brandy, bourbon, rum, gin, vodka, liqueurs and tequila, with the standard 150% duty falling to 110% in Year 1 and eventually to 75% by Year 10 for qualifying products, subject to a minimum import price.

For Scotch specifically, India's tariff will fall from 150% to 75% initially and then to 40% by year ten. Bilateral goods trade between India and the UK reached $25.12 billion in FY26, with $11.68 billion in imports and $13.44 billion in exports from India.

Cars move first, spirits lag

JLR and McLaren have announced price reductions on their UK-built models under the pact, TOI reported. JLR India had already cut prices on select UK-built Range Rover models in anticipation of the deal, the Range Rover SV became cheaper by Rs 75 lakh to Rs 3.5 crore, and the Range Rover Sport SV dropped by Rs 40 lakh to Rs 2.4 crore.

The cuts apply only to vehicles imported from the UK, so the Defender and Discovery, both built at JLR's Slovakia plant, remain unaffected. McLaren is reportedly considering price cuts of nearly 38% across its India portfolio, the report said.

Also read: India-UK FTA comes into effect today, unlocking duty-free access for Indian exports

Scotch and gin buyers, however, will have to wait. TOI reported that imported blended whisky priced around Rs 3,000 a bottle is likely to see cuts of only Rs 350-400, while Indian-made blended whisky (IMFL) may see reductions of just Rs 50-60 a bottle, if companies choose to pass on the benefit at all. Nearly 80% of India's whisky imports from the UK are used for blending with locally made whisky, per the report.

Companies will need to file a declaration of origin confirming their stock qualifies as UK-origin, and revised cost filings will have to go to state excise departments, a process TOI reported could take 15 to 30 days.

Why the gap?

Alcohol remains among India's most heavily taxed commodities. According to TOI, current tariffs of 150% will be halved for Scotch and gin under the deal before tapering to 40% over a decade, on top of existing state levies. Industry body ISWAI estimated that taxes account for 60-61% of MRP for imported whisky in states like Maharashtra, and 56% for Indian single malts, the report said. The association projected overall price reduction under the FTA at around 12-13%, provided the benefits are passed on to consumers.

Also read: Whisky, cars and more: What gets cheaper as India-UK FTA kicks in

ISWAI CEO Sanjit Padhi was quoted by TOI as saying the full benefits of the FTA would depend on whether tariff cuts reach consumers without being offset by state-level taxes or regulatory curbs.

Confederation of Indian Alcoholic Beverage Companies director general Anant S Iyer told TOI that pricing decisions ultimately rest with individual companies, since states control both supply and consumer pricing.