The agreement will see tariffs on Scotch whisky exports to India halved from 150% to 75%, with the potential for further reductions in the coming decade. Tariffs on soft drinks will also be gradually eliminated.

Scottish Secretary Ian Murray hailed the deal as “fantastic news for Brand Scotland,” highlighting the opportunities for sectors ranging from food and drink to life sciences and clean energy.

The Scotch Whisky Association (SWA) celebrated the agreement as an “historic moment”. SWA chief executive Mark Kent said the tariff reduction would lay the foundations for “further investment and jobs”.

Jean-Etienne Gourgues, CEO at Chivas Brothers, added: “The signing of the UK-India free trade agreement marks a significant step forward for the Scotch whisky industry.

“Once ratified by UK and Indian governments, this deal will unlock one of the world’s biggest whisky markets and enable us to open Chivas Brothers’ Scotch whiskies up to a wider range of Indian consumers seeking premium, world-class spirits.

“The deal will support long term investment and jobs in our distilleries in Speyside and our bottling plant at Kilmalid and help deliver growth in both Scotland and India over the next decade. It’s clear that the future of Scotch is global and we believe India will be a key partner in that journey.”

Across the UK, the trade pact is estimated to be worth £6 billion and is expected to create 2,200 jobs. It will slash tariffs on a wide array of UK goods, including cars and cosmetics, from an average of 15% to 3%, with the aim of boosting UK exports to a nation projected to become the world’s third-largest economy by 2027.