India and Britain Set Trade Pact Rollout for May

India and Britain are set to begin rolling out their long-awaited trade agreement in May, a move that will lower tariffs on Scotch whisky in India and open the British market more widely to Indian exports, according to officials and industry sources familiar with the plan.

The agreement, which was announced after years of negotiations, is expected to take effect in the second week of May, giving both sides an early test of how far they can use trade policy to deepen economic ties at a time of slower global growth and rising protectionism. For India, the deal is meant to expand access for goods such as textiles, footwear, gems and jewelry, sports goods and toys. For Britain, one of the most closely watched changes is the reduction in India’s steep import duty on Scotch whisky.

At present, imported whisky faces a 150% tariff in India. Under the first stage of the agreement, that rate is expected to fall to 75%, before declining further to 40% by 2035. The phased cut is likely to reshape pricing for premium spirits in one of the world’s fastest-growing alcohol markets, where imported Scotch has long been priced well above local alternatives because of taxes and duties.

The lower tariff could help British distillers expand sales in India, where demand for premium liquor has been rising among urban consumers and affluent buyers. Industry executives have said that even a partial reduction in duties could make imported Scotch more competitive in bars, hotels and retail stores, though final shelf prices will still depend on state taxes, distribution costs and currency movements.

The trade pact also gives Indian manufacturers new access to the British market for electric and hybrid vehicles under a quota system. That provision is intended to balance Britain’s interest in opening its market while protecting sensitive sectors from a sudden surge in imports. Indian automakers have been seeking broader export opportunities as they invest more heavily in cleaner vehicles and battery technology.

The rollout comes as both governments look for practical gains from the agreement after years of political discussion and commercial lobbying. For India, the deal offers a chance to support labor-intensive industries that rely on exports. For Britain, it provides a route to sell more high-value consumer goods into one of Asia’s largest economies.

Officials have said the agreement will be phased in rather than implemented all at once, allowing customs authorities and businesses time to adjust. Companies on both sides are now preparing for changes in pricing, sourcing and shipping schedules ahead of the May start date.