From 150% to 50%: India lowers bourbon whiskey tariffs as trade talks with US pick pace

India’s decision to slash import duties on bourbon whiskey—from a steep 150% to 50%—was officially notified by the Department of Revenue on February 13. 

However, the reduction is limited to bourbon whiskey alone; other imported alcoholic beverages will continue to attract a 100% import duty. 

Additionally, a 50% agricultural cess under the Agricultural Infrastructure and Development Cess (AIDC) remains applicable, effectively doubling the overall taxation on these imports.

The tariff reduction comes as part of broader trade negotiations aimed at strengthening India-US relations. In recent weeks, India has extended similar tariff adjustments for several US goods, paving the way for meaningful trade agreements.American bourbon whiskey accounts for 25% of India’s imported whiskey market. 

In the financial year 2023-24, India imported $2.5 million worth of bourbon, with the US accounting for $0.75 million. Other notable exporters included the UAE, Singapore, and Italy.At the start of his meeting with PM Modi, President Trump praised the Indian leader, calling him “a great leader” and adding, “We’re going to make some wonderful trade deals for India and the US.” 

During a joint press conference, Trump humorously admitted, “He (PM Modi) is a much tougher negotiator than me and a much better negotiator than me. There is not even a contest.”

The talks concluded with both nations pledging to double two-way trade to $500 billion by 2030. A bilateral trade agreement is now in the works to lower duties further and increase market access for businesses in both countries.

Bourbon whiskey, a distinctly American spirit, is crafted from at least 51% corn and aged in charred oak barrels, giving it its signature mild sweetness. Recognized in 1964 by the US Congress as a “distinctive product of the United States,” bourbon remains a cultural hallmark of states like Kentucky and Tennessee. Major brands available in India include Jack Daniel’s, Jim Beam, and Maker’s Mark, among others.