October 9, 2025 06:24 PM IST First published on: Oct 9, 2025 at 06:24 PM ISTWhen UK Prime Minister Keir Starmer landed in Mumbai, the visit was marked by considerable pomp — Bollywood-style frames, cultural showcases, and a large UK business and academic delegation accompanying him. Alongside that spectacle, his team unveiled fresh investment pledges from Indian firms and reaffirmed their intent to bring the India–UK trade deal into effect quickly. But for this partnership to reach its full potential, attention must turn to migration, talent, and every other bridge that connects two economies — even whisky casks used as cross-border investments.When Prime Ministers Modi and Starmer formally signed the India–UK Free Trade Agreement earlier this year, both sides spoke of a new era of collaboration — not just in trade, but in shared ambition. The pact promises to remove or reduce tariffs on most goods and services. The UK expects to reap benefits of around £4.8 billion annually over time, and India foresees deeper access for its exporters. The agreement holds real potential: According to government modelling, UK exports to India could increase by nearly 60 per cent, and imports from India by about 25 per cent, resulting in a total trade increase of approximately £25.5 billion in the long run. While the gains aren’t earth-shattering in relative terms, they are meaningful — especially for sectors where India holds competitive strength, such as textiles, leather, and specialty goods. In return, this benefits UK capabilities in advanced manufacturing, green technology, and services.AdvertisementAlso Read | India-UK FTA offers clear benefits, but long-term impact depends on execution and political willWhat complicates the mobility debate further is the shifting global landscape of skilled migration. In September 2025, the US announced a staggering increase in the application fee for new H-1B petitions: From a few thousand dollars to $100,000. This move is widely seen as “prohibitive,” especially for Indian tech firms that have relied on the H-1B route for decades to staff client-facing roles in America. Indian companies are already recalibrating strategies: Leaning harder on intra-company L1 transfers, offshoring marginal work back to India or closer geographies, or deploying B-1 business visas for short visits.The timing places the UK in an interesting position. As the US tightens the screws, Britain is offering a gentler pitch — lower visa fees, expanded “Global Talent” routes, and a narrative of being friendlier to Indian tech professionals. In that context, the India–UK FTA, even if silent on full mobility rights, becomes part of a broader contest: Can the UK capture some of the talent that the US is effectively pricing out? The FTA may not grant sweeping visa access, but the shifting US regime increases the stakes — Indian professionals and firms will watch how Britain balances openness and domestic politics, and how effectively it can convert trading ties into pathways for people.An interesting dimension of this agreement is how it may reframe Scotch whisky not only as a traded product but as a financial asset class. The deal halves India’s import duty on Scotch from 150 per cent to 75 per cent initially, which improves margin prospects for distillers, intermediaries and distributors. That shift has already spurred financial innovation. For example, just before the FTA was signed, the Caledonian Malt Fund L P, a Bermuda-registered investment fund focused on Scotch whisky casks, was launched. It is openly anchored on the expectation that tariff relief in India will strengthen demand and valuation of casks. In this way, the trade agreement offers more than just greater flows of goods — it lays the groundwork for cross-border capital investment. For Indian investors, whisky may evolve from a luxury import to a meaningful portfolio allocation tied to global demand, maturation cycles, and bonded warehouse structures.AdvertisementYet challenges remain. The Bilateral Investment Treaty, which is still being negotiated, is crucial for ensuring investor protections, tax clarity, and effective dispute resolution. India still needs to address regulatory and sanitary barriers that limit market access for goods such as mangoes, spices, and marine products. Meanwhile, the UK’s planned Carbon Border Adjustment Mechanism looms over carbon-intensive Indian exports, such as steel and cement, unless safeguards are agreed upon. And, perhaps most immediately, the deal must pass the UK Parliament — a process that could stretch into a year or more, subject also to domestic lobbying pressures on sensitive sectors.most readWhat matters most, though, is what happens on the ground in the years ahead. Will British firms expand hiring of Indian professionals — even under general immigration pathways? Will Indian exporters scale up manufacturing and innovation-led exports to the UK? Will whisky imports flow more freely, and will Scotch casks become a recognised asset class for bilateral capital flows? If yes, then the FTA may earn a place as more than just a headline — it could be a live engine of growth, cooperation and shared opportunity.Ultimately, this partnership is not without risk, but it is well worth the effort. The India–UK FTA charts a hopeful path, blending commerce, strategy and innovation. Its success will depend less on the signatures and more on sustained delivery, adaptability and the willingness to bridge the gaps in mobility, regulation and trust. If both sides invest in converting promise into practice, this deal might quietly become one of the strongest pillars in their long-term future.The writer is a Fellow and Lead, World Economies and Sustainability at the Centre for New Economic Diplomacy (CNED) at Observer Research Foundation (ORF)