The UK-India Trade Agreement: What It Changes for Hospitality and Food

The India-UK Comprehensive Economic and Trade Agreement has been in force since 15 July 2026, and for hospitality its effects are real but smaller and slower than the headlines. Whisky got cheaper at the port, not by much on the shelf. Salmon and cod lost their Indian tariffs on day one. Indian spices, pickles and processed foods now enter the UK duty-free. And a small new route lets a limited number of Indian chefs work in Britain. The detail matters more than the slogan.

_This guide reflects rules as published in October 2026. This is general information, not legal or tax advice: licence fees, forms and timelines change, so confirm current requirements with the relevant authority or a qualified adviser before you apply._

This guide sets out what changed for drinks, ingredients, chefs and staff on assignment, and what restaurants, bars, hotels and food exporters can do with it.

What is the agreement, and is it in force?

Yes. The agreement was concluded on 6 May 2025, signed in London on 24 July 2025 and entered into force on 15 July 2026, according to India's Press Information Bureau. A separate social security agreement, signed on 10 February 2026, came into force the same day.

The agreement has 30 chapters, covering goods, services, digital trade, intellectual property and government procurement. On the day it took effect, the Indian government reported that over 50 export consignments worth more than 140 million US dollars left from over 20 ports, airports and factories under the new terms. The UK government's 2025 announcement estimated that, in the long run, the deal would raise bilateral trade by 25.5 billion pounds a year.

What changes for whisky, gin and other spirits?

Indian customs duty on Scotch whisky fell from 150 per cent to 75 per cent on day one, and is set to fall to 40 per cent by the tenth year, according to the UK government. Gin is less clear. The UK government's 2025 announcement said whisky and gin would follow the same path, but readings of the published schedule differ. India Briefing places gin with vodka, rum and other spirits on a slower track, from 110 per cent in year one to 75 per cent by year ten, and only for products above a minimum import price of 6 US dollars per 750 ml bottle. A summary from Economic Laws Practice describes the same 110 to 75 per cent path for selected spirits. Check the tariff line for your exact product before you price a list.

The bigger point is that customs duty is not the shelf price. In India, alcohol is taxed by the states, which add excise duty, VAT and trade margins after the bottle lands. In 2025 the industry analyst Vinod Giri told PTI that "most of the taxes on alcohol sit in states", and estimated the effect on imported Scotch at ₹100 to ₹300 a bottle even if the full cut were passed on.

That is roughly how it has played out. By October 2026, The Whiskey Wash reported that most states that had repriced had cut UK spirits by about 6 to 15 per cent. Uttar Pradesh brought Johnnie Walker Black Label down by about ₹250. Delhi's excise department told wholesalers on 5 October to apply for lower prices with a revised cost card, a recent bill of entry and an origin declaration reference.

For bars and hotels in India, this means:

• Do not reprice a cocktail list on the headline cut. Wait for your state's new price list.
• Ask your distributor which brands are bottled in the UK and which are bottled in India from bulk spirit, because the saving differs.
• The duty falls again each year until year ten. Revisit pour costs annually, as our guide to bar pour costs and par levels suggests.

What changes for food and ingredients?

Most food trade gets cheaper over time in both directions, with sensitive products protected. The main lines:

For an Indian restaurant group, imported salmon and some British pantry goods should become cheaper as distributors pass the cut on. For an Indian food business selling pickles, spice blends or ready meals to UK retailers or restaurants, the tariff advantage is immediate, though UK food labelling and safety rules still apply in full.

Every claim needs proof of origin. For exports from India, the first certificates of origin were issued on a self-certification basis through the government's eCoO 2.0 platform. For imports into India, the importer needs an origin declaration from the UK exporter or producer.

What does it mean for chefs?

A small, specific route opens, not a general chef visa. India's government describes a first-of-its-kind arrangement giving 1,800 Indian chefs, yoga instructors and classical musicians access each year. That is 1,800 places in total across the three groups, not per group.

According to OTS Solicitors, writing after the Home Office published updated guidance on 15 July 2026, the route covers traditional chefs or chefs de cuisine, under a specific service classification, and does not cover every chef role. Assignments last up to 12 months. There must be a genuine Indian service supplier with a contract with an authorised UK sponsor. Applicants normally need a degree or equivalent technical qualification and three years' professional experience, or six if self-employed. The route does not lead to settlement.

So a UK restaurant cannot use it to fill an ordinary kitchen vacancy. It may suit a planned collaboration, a residency or a regional Indian menu developed with a named chef through an Indian company. Hill Dickinson notes that the agreement does not appear to make major changes to the UK visa regime. For the wider picture, see our guide to working abroad in hospitality.

What about staff sent on assignment?

The social security agreement means workers sent temporarily between the two countries, and their employers, pay contributions in only one country for up to five years. Before, the limit for Indian workers in the UK was three years. India expects more than 75,000 professionals and over 900 companies to benefit.

For a hotel group sending a general manager from Mumbai to London for two years, or a UK operator sending a chef to open a site in Bengaluru, this removes a double cost. Check the certificate process with payroll before the move.

What should hospitality businesses do now?

Act on the parts that touch your costs today, and plan for the slower ones.

1. Importers and bars in India. Track your state's price list, not the national tariff. Ask suppliers for origin declarations.
2. Restaurants in India using UK seafood or pantry goods. Ask distributors when the lower duty reaches your invoice.
3. Indian food producers. Price UK orders on the duty-free rate and register for electronic certificates of origin.
4. UK restaurants planning Indian collaborations. Talk to an immigration adviser about the service supplier route early, since places are capped each calendar year.
5. Groups with staff in both countries. Use the five-year social security rule when you plan assignments.

If you are weighing a site in either country, our guides to opening a restaurant in India and opening a restaurant in London cover the local rules the agreement leaves untouched.

A tariff cut at the port is a rumour until the state price list agrees.

Key takeaways

• The India-UK agreement has been in force since 15 July 2026, with a social security agreement alongside it.
• Duty on Scotch whisky fell from 150 to 75 per cent and is set to reach 40 per cent by year ten. Gin and other spirits appear to follow a slower path. State taxes mean Scotch shelf prices have fallen by roughly 6 to 15 per cent.
• UK salmon, cod and lamb lost their Indian duties on day one. Dairy, cheese and apples stay protected.
• Indian spices, pickles, pulses and most processed foods now enter the UK duty-free.
• A capped route of 1,800 places a year covers Indian chefs, yoga instructors and classical musicians together. It is not a general chef visa.
• Staff on assignment pay social security in one country only, for up to five years.