India may reconsider easing Scotch tariffs – Reuters

India could reconsider tariff concessions offered to the UK on products such as Scotch whisky if the Westminster government fails to address New Delhi’s concerns over forthcoming steel measures, an Indian official told Reuters ahead of fresh bilateral trade talks.

Under the trade pact, India agreed to cut tariffs on Scotch whisky from 150% to 75% initially and further to 40% over 10 years.

The India-UK free trade deal has run into hurdles after ⁠Britain proposed reducing quotas and increasing tariffs on steel imports to protect its domestic industry, Reuters reported.

Scotch Whisky exports were valued at £5.36 billion in 2025, with the equivalent of 1.3 billion bottles exported around the world. Scotch accounts for 22% of the UK’s total food and drink exports. About 41,000 jobs are supported by the whisky industry in Scotland alone, with a further tens of thousands across the supply chain.

“So now the ​ball is in their (UK) court,” an Indian trade official told reporters. “If they do not ​leverage their free trade agreement, we can always reconsider the concessions we offered.”

UK Trade Secretary Peter Kyle was due in India for talks with Commerce Minister Piyush Goyal on Tuesday and, in a statement, Kyle said ​the free trade agreement was a win-win and would “unlock massive opportunities.”

“I look forward to working with ​Piyush Goyal to make sure everybody can start to feel the benefits as soon as possible,” Kyle said ‌in ⁠the statement, which didn’t mention discussions on steel.

A UK official said that steel is not part of the discussions on implementing the free trade agreement.

The trade deal ​includes tariff reductions by ​both sides on a ⁠range of goods, from textiles to whisky and cars, while expanding market access for businesses in the world’s fifth- and sixth-largest economies.

The two countries ​expect the agreement to boost bilateral trade by an additional £25.5 ​billion by 2040.

India, along with Brazil, Turkey, Japan, South Korea, Switzerland and Australia, has raised concerns at the World Trade Organization over the UK ‘s new steel measures.