India-UK Free Trade Agreement Set to Transform Hospitality and Agri-Exports Sectors

India-UK Free Trade Agreement Set to Transform Hospitality and Agri-Exports Sectors

By Manu Vardhan Kannan

Published on July 30, 2025

In a landmark step towards economic cooperation, India and the United Kingdom officially signed the Comprehensive Economic and Trade Agreement (CETA) on July 24, 2025. The deal is set to dramatically alter the landscape for Indian hospitality, agri-exports, and employment by easing trade barriers, boosting investments, and fostering talent exchange.

One of the most immediate beneficiaries of the FTA is India’s hospitality sector, which stands to gain from the phased reduction of import duties on premium UK spirits. With tariffs on Scotch whisky and gin dropping from 150% to 75% immediately, and to 40% over the next decade, Indian hotels, bars, and restaurants can now access and offer high-end imported beverages at competitive prices. This move aligns perfectly with the rising demand for luxury and global experiences among Indian consumers and foreign travelers alike.

The impact extends beyond beverages. The FTA encourages UK investment in Indian hospitality infrastructure, including joint ventures and upscale F&B concepts. Liberalized visa norms under the agreement also pave the way for greater mobility of skilled professionals, chefs, sommeliers, and hospitality managers, facilitating international collaborations and skill-sharing that will raise India’s service standards to global benchmarks.

Meanwhile, the agriculture and food processing industries are equally poised for transformation. The FTA eliminates or significantly reduces tariffs on a wide range of Indian meat, seafood, and vegetable exports. This is particularly impactful for Indian seafood producers, who will now enjoy tariff-free access to the UK’s £5.4 billion seafood market. Industry experts estimate a potential 70% surge in marine product exports, benefitting coastal states like Andhra Pradesh, Kerala, and Tamil Nadu, and improving incomes for lakhs of fisherfolk.

The agreement also grants duty-free access to over 95% of Indian agricultural and processed food products, including pulses, spices, and ready-to-eat meals. Key crop-producing regions like Maharashtra, Punjab, and Kerala will be able to tap into new market opportunities, enhancing farmer income and driving rural employment.

From an employment standpoint, the FTA is expected to create over one million new jobs in India over the next five years. With expanded export markets and rising demand, opportunities will grow across farming, aquaculture, food processing, packaging, logistics, and hospitality services. The deal also includes institutional support for skill development and mutual qualification recognition, making it easier for Indian professionals to find work in the UK or contribute to UK-compliant operations in India.

According to experts, the FTA’s provisions on technology transfer, automation, and real-time distribution will also help modernize Indian hospitality supply chains. Similarly, voices from the seafood and agri-export sectors have hailed the agreement as a long-overdue enabler of market access and profitability.

By reducing tariffs, fostering professional exchange, and unlocking export markets, the India-UK FTA of 2025 emerges as a powerful catalyst for India’s hospitality and agri-based industries. As global tastes converge and trade becomes more seamless, Indian enterprises, from boutique hotels to shrimp exporters are better equipped to meet international standards, serve discerning customers, and scale up with confidence.


Travel Agents See New Opportunities and Challenges in GST Reforms: Jyoti Mayal

Travel Agents See New Opportunities and Challenges in GST Reforms: Jyoti Mayal

By Hariharan U

Published on September 8, 2025

The recent GST reforms announced at the 56th GST Council meeting are set to reshape India’s travel and tourism industry, placing travel agents at the intersection of new opportunities and emerging challenges.

For hotel accommodation priced up to ₹7,500 per day, the GST rate has been reduced from 12% with input tax credit (ITC) to 5% without ITC. While this makes travel more affordable for consumers, travel agents lose ITC benefits, potentially compressing margins.

In non-economy class air travel, the GST rate has increased from 12% with ITC to 18% with ITC. This change raises fares for business travelers but ensures agencies serving corporate clients can still claim full ITC, aiding cash flow management.

One of the most significant developments is the amendment of Section 13(8)(b) of the IGST Act, which now allows services provided by travel agents and tour operators to foreign clients to qualify as exports. This recognition enables agencies to avail zero-rated benefits under GST, including refunds of input tax credit, while also strengthening their global competitiveness.

The motor vehicle transport sector has also seen changes. The GST rate remains at 5% without ITC, but for those opting for full ITC, it has risen from 12% to 18%, requiring agencies to evaluate their business models carefully.

Commenting on the reforms, Jyoti Mayal, chairperson of the Tourism and Hospitality Skill Council, said,“The latest GST reforms bring both relief and responsibility for travel agents. On one hand, reduced hotel tariffs will stimulate demand in the domestic tourism segment. On the other, the removal of ITC in this category will require agents to realign their pricing strategies. Most importantly, the recognition of intermediary services as exports is a game-changer, unlocking opportunities for Indian travel businesses to expand their global footprint while enjoying the benefits of zero-rated taxation. Luxury travel is as important and needs to be promoted more, as the returns are higher, spends are higher, and it is exclusive. India needs to focus on inbound luxury tourism to stay competitive with neighbouring countries”.

As the sector adapts, the focus will be on balancing affordability with sustainable business models, ensuring Indian travel agents remain competitive in both domestic and international markets.


Diageo India Partners with THSC to Skill 300 Youth under ‘Learning for Life’ Programme

Diageo India Partners with THSC to Skill 300 Youth under ‘Learning for Life’ Programme

By Manu Vardhan Kannan

Published on September 7, 2025

Diageo India (United Spirits Ltd.), one of the country’s leading alcobev companies, has signed a Memorandum of Understanding (MoU) with the Tourism and Hospitality Skill Council (THSC) to train 300 students under its flagship ‘Learning for Life’ programme. The signing ceremony was attended by Praveen Someshwar, MD & CEO, Diageo India; Rajan Bahadur, CEO, THSC; Mr. Navdeep Singh Mehram, Vice President – CSR & Sustainability, Diageo India; and Mr. Vaibhav Verma, Vice President – Industry Engagement, THSC.

This initiative reflects Diageo India’s continued commitment to creating a diverse, skilled, and future-ready workforce, in line with its Spirit of Progress ESG action plan.

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The classroom-based training programme will be held at THSC-affiliated centres in Bengaluru and delivered by certified trainers and assessors. Designed as a short-term skilling programme for unemployed and underprivileged youth, it is aligned with the National Skill Qualification Framework (NSQF). The curriculum will cover technical training, communication, digital literacy, and soft skills, preparing candidates for roles in the hospitality, business, and service industries. Upon completion, participants will undergo assessment and certification by THSC, providing credibility and industry recognition.

With its strong network of over 750 industry partners, THSC will facilitate placements and apprenticeships for successful candidates, enabling them to secure employment in hotels, restaurants, quick-service chains, and allied services.

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Praveen Someshwar, MD & CEO of Diageo India, said: “The hospitality sector is a vital engine of growth and opportunity. Through ‘Learning for Life’ and with the Tourism and Hospitality Skill Council, we are empowering young talent with the skills and confidence to thrive, building not just careers, but a more inclusive India.”

Rajan Bahadur, CEO of THSC, added: “We are proud to partner with Diageo India on the ‘Learning for Life’ initiative, which aligns closely with our mission to skill and empower youth for meaningful careers. The hospitality sector continues to be one of the largest job creators, and this programme will provide participants with practical skills, exposure to industry standards, and a pathway to sustainable employment.”

Launched in 2020, Diageo India’s ‘Learning for Life’ programme has already impacted the lives of over 6,500 students. By providing equal access to training and resources, the programme helps boost employability, improve livelihoods, and strengthen the hospitality sector with a more inclusive and skilled workforce.


Premium Travel Faces Price Hike Under GST 2.0

Premium Travel Faces Price Hike Under GST 2.0

By Manu Vardhan Kannan

Published on September 7, 2025

Luxury travel in India is set to become more expensive as the GST Council raises taxes on private jets, yachts, and premium airfares under its revised GST 2.0 framework. Effective September 22, aircraft for personal use, typically private jets and helicopters operated outside scheduled commercial services, will now attract a flat 40 percent GST, up from the earlier 28 percent GST plus a 3 percent compensation cess.

Yachts and other pleasure vessels will also fall under the 40 percent GST slab, closing a long-standing gap in the taxation of luxury assets. This marks a significant increase in acquisition and import costs for charter operators and ultra-high-net-worth individuals.

Non-economy class air tickets will see an increase from the earlier 12 percent GST to 18 percent, with airlines expected to pass on the added cost to passengers. Business and first-class travelers will experience a noticeable rise in fares amid strong demand for premium travel.

The GST Council’s revised structure underscores a clear policy message: discretionary flying and sailing are now subject to higher tax burdens, while services such as drones, simulators, and freight operations move to lower GST slabs. Luxury enthusiasts and operators of high-end travel assets should prepare for increased costs as these changes come into effect.

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