Chivas Brothers Seeks to Double Exports to India If Tariffs Are Eliminated

Strategic Insights -

Trade talks between the UK and India are at a critical juncture, with Chivas Brothers, a Scotch whisky maker, planning to double its exports to India if New Delhi eliminates tariffs on imported spirits. The British industry blames Indian levies on British whisky makers for holding back growth in the country. The UK is seeking a trade deal with India, with Prime Minister Boris Johnson set to visit New Delhi this week. The Scotch Whisky Association is emphasizing the need for a reduction in tariffs, citing the significant revenue generated by high levies on imported spirits. Indian authorities have been wary of opening up domestic industry with free trade deals, but have recently signed agreements with the UAE and Australia.

Key Takeaways:

  • Chivas Brothers aims to double its exports to India if tariffs are eliminated, with a midterm target to increase the size of the market significantly.
  • The British industry is holding back growth in India due to 150 per cent Indian tariffs on imported spirits.
  • The UK is seeking a trade deal with India, with Prime Minister Boris Johnson set to visit New Delhi this week.
  • India is the largest whisky consumer and the second-largest Scotch export market by volume.
  • The Scotch Whisky Association prioritizes a reduction in tariffs and hopes for an interim agreement ahead of a full trade deal.
  • Trade between the UK and India was worth £18.5bn in 2020 but has stagnated over the past decade.
  • India takes 1.2 per cent of British exports, ranking as the UK's 21st biggest export market.
  • The UK and India agreed a UK-India Comprehensive Strategic Partnership to boost investment and jobs as part of a plan to double trade by 2030.

Statistics:

  • £18.5bn - trade between the UK and India in 2020.
  • 150 per cent - existing Indian tariffs on imported spirits.
  • 1.2 per cent - proportion of British exports going to India.
  • 21st - ranking of India as a UK export market.
  • £38bn - trade between the UK and Belgium in 2020.
  • 2024 - year in which both British and Indian general elections are scheduled to take place.
  • 2030 - year in which the UK and India aim to double trade.

Sources:

  • "Scotch maker Chivas Brothers says it aims to double exports to India if New Delhi eliminates whisky tariffs" - The Telegraph.
  • "UK trade secretary says 'everything is on the table' as UK and India seek to finalise trade deal" - BBC News.
  • "India to sign free trade deal with UAE as trade negotiations with Australia reach interim agreement" - CNBC.
  • "Scotch Whisky Association: 'Tariffs must be reduced for UK-India trade deal'" - The Times.