Welsh whisky maker Penderyn Distillery, which recently opened its third site at Swansea’s historic Hafod-Morfa Copperworks, has welcomed the UK’s newly signed free trade agreement with India, describing it as a “better platform” for growth in one of the world’s largest whisky markets.
The landmark deal — signed at Chequers by Prime Minister Sir Keir Starmer and Indian Prime Minister Narendra Modi — is expected to deliver a £6 billion boost to the UK economy and £80 million annually for Wales, with whisky tariffs halved immediately from 150% to 75%, and set to fall to 40% by 2035.
Penderyn CEO Stephen Davies said the agreement would help the distillery build on its growing presence in India’s domestic and travel retail sectors:
“It’s an exciting and developing market for us. The agreement to reduce tariffs will provide a better platform for us and our industry to develop links and build business over the next five years. These are exciting times.”
Penderyn’s Swansea distillery — housed in a restored 19th-century copperworks — opened in 2023 following a £15 million regeneration project supported by Swansea Council, the Welsh Government, and the National Lottery Heritage Fund. The site now offers tours, tastings and masterclasses, and has become a flagship for Welsh whisky and industrial heritage.
What the deal means for Wales
The agreement is expected to benefit 256 Welsh businesses that exported £226 million worth of goods to India last year. Key sectors set to gain include:
- Food and drink: Welsh lamb will enter India duty free from day one, eliminating a 33% tariff
- Renewable energy: Wales’s clean energy sector will gain unprecedented access to India’s public procurement market
- Creative industries: Increased copyright protections will support Welsh media and digital exports
Wider UK impact
The deal will reduce average tariffs on UK exports to India from 15% to 3%, making it easier for British companies to sell goods such as gin, whisky, aerospace parts, medical devices, cosmetics, and luxury cars. It also opens the door for Indian manufacturers to export electric and hybrid vehicles to the UK.
The UK government says the agreement will create 2,200 British jobs, raise wages by £2.2 billion annually, and lower prices for consumers on everyday items like clothing, shoes, and food.
Strategic cooperation and concerns
Alongside the trade deal, the two nations agreed to deepen collaboration on defence, education, climate, technology and innovation, and to tackle illegal migration and organised crime through enhanced intelligence sharing and a new criminal records agreement.
However, the deal has faced criticism over social security exemptions for Indian workers on temporary secondment to the UK. Business Secretary Jonathan Reynolds dismissed concerns, saying similar arrangements exist with 17 other countries and that “no-one is being undercut”.
The agreement still requires UK parliamentary approval and is expected to take at least a year to come into effect.
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