The agreement, set to roll out by mid-2026, signals a strategic recalibration of how luxury is consumed, distributed, and priced in India. For the discerning Indian buyer, it means that some of the world’s most coveted products are about to become far more accessible.

British Luxury Cars Get a Duty Makeover

The standout beneficiary? The British automotive industry—and Indian consumers eyeing a JLR or Bentley. Under the new pact, import duties on luxury cars will be slashed significantly. For internal combustion vehicles, tariffs will drop from the current 70–100% range to 30–50% in the first year, gradually easing to 10% over 15 years. Crucially, this reduction applies to a quota of 20,000 units in the first year, tapering to 15,000 in later years.

Electric vehicles and hybrids get an even more generous hand: sub-£40,000 models enter duty-free, while those above that threshold face duties of just 10% or 50%, depending on category. These changes are designed not just to bring prices down, but also to signal India’s openness to clean, high-tech mobility from the UK.

The result? The Indian ultra-luxury car segment, already seeing double-digit growth, may be on the verge of a seismic expansion. For brands like Rolls-Royce, McLaren, and Mini, the market is about to get meaningfully broader.

Duty Down, Glass Up: Scotch Gets Cheaper

If any product has become shorthand for British luxury, it’s Scotch whisky. And here too, the FTA delivers. Tariffs on Scotch and British gin will be halved immediately—from 150% to 75%—with a glide path down to 40% over the next decade. For a market where imported spirits have often carried price tags three to four times higher than their country of origin, this is a tectonic shift.

Premium distilleries such as Glenfiddich, The Macallan, and Laphroaig now stand to gain significantly, as their top-shelf labels become materially more affordable. While distributors may retain some of the margin benefits, experts anticipate retail prices could fall by 30–40% in key metros.

More importantly, it opens the door for premiumisation to trickle into Tier 2 and 3 cities, where aspirational drinkers have long been priced out of the single malt market.

Cosmetics, Chocolates, Soft Power

Beyond the headline categories, the trade deal subtly recalibrates the cost of everyday luxury. Imported cosmetics—perfumes, nail polishes, soaps—will see phased tariff elimination. British F&B staples like gourmet chocolates, biscuits, soft drinks, salmon, and lamb will also become more competitively priced.

For Indian consumers increasingly fluent in global taste, this means not just availability, but affordability of brands like Jo Malone, Cadbury's artisan lines, and niche British skincare. As the middle and upper-middle segments of Indian consumers evolve, these “small luxuries” are poised to become daily staples.