Scotch whisky distillers are hoping an expansion into the lucrative Indian market could help counter the impact of any tariffs imposed by Donald Trump.
Jonathan Reynolds, the UK Business Secretary, flies into Dehli today for trade talks in what will be the world’s third largest economy by the end of the decade.
Scotch whisky currently faces steep import tariffs across India despite a growing appreciation of the premium spirit among the country’s rapidly expanding middle class.
“Getting a trade deal with India is one of my top priorities since getting into Government and taking this role,” Reynolds told Mail Online.
“I want to see more bottles of Scotch whisky on countertops in Delhi, crates of fine British goods sold to India’s growing middle class, and exciting new opportunities for our world-leading services firms to do more business in markets that have been highly protected and closed off to them for so many years.”
It comes at a time of rising uncertainty for the Scotch whisky industry since the return of Trump to the White House.
Diageo, which owns Johnnie Walker and other iconic Scottish drinks brands, earlier this month scrapped a key sales target amid growing uncertainty over US tariffs and volatile consumer demand.
The company, a major employer in Scotland, said it was in talks with the Trump Administration over upcoming tariff policies that could “impact” its sales recovery.
Other Scotch whisky producers have warned Donald Trump could have a “catastrophic” impact on the industry with production cut back as a result.
The new President has made clear he is prepared to slap huge fees on goods imported into the US if he believes it will boost American businesses.
Scotch whisky is one of the UK’s biggest exports to the USA with sales reaching £978m last year. France, the second biggest market, is worth £474m in comparison.
But there are hopes the Indian market could prove a boost.
India is forecast to have the highest growth rate in the G20 for the next five years and set to become the world’s third biggest economy by 2028.
With an expected 95 million strong middle class by 2035, ministers see opportunities to improve trade opportunities for British businesses.
John Swinney has previously vowed to use Donald Trump’s affinity for Scotland in a bid to avoid the prospect of tariffs being applied on imports to the US.
The Scotch Whisky Association previously said: “The industry looks forward to working in partnership with President Trump and his administration to build trade links which create jobs and investment in the US.”
To sign up to the Daily Record Politics newsletter, clickhere