New Delhi: In a significant trade move, India has drastically cut import duties on American bourbon whiskey, reducing the tariff from 150% to 50%—a 66.6% drop. The decision came just hours before Prime Minister Narendra Modi met US President Donald Trump for bilateral discussions focused on trade and tariffs.
India’s decision signals a willingness to engage in large-scale trade negotiations with the US, with multiple American products receiving tariff reductions. However, the duty cut applies exclusively to bourbon whiskey, while other imported alcoholic beverages will continue to face a 100% tariff. Additionally, a 50% Agricultural Infrastructure and Development Cess (AIDC) has been imposed on bourbon, effectively maintaining a high overall tax burden.
Bourbon whiskey, a key US export, represents nearly 25% of India’s whiskey imports. In 2023-24, India imported bourbon worth $2.5 million, with the US contributing $0.75 million, followed by the UAE, Singapore, and Italy.
During a press briefing, President Trump praised Modi as a “great leader” and an exceptionally skilled negotiator. The two leaders later announced their goal of more than doubling bilateral trade to $500 billion by 2030, with plans for a trade agreement to lower tariffs and expand market access.
What is Bourbon Whiskey?
Bourbon is an American whiskey primarily made from at least 51% corn, aged in charred oak barrels, giving it a distinctively smooth, slightly sweet taste. Officially recognized as a US-exclusive product since 1964, Kentucky and Tennessee lead its production. Popular bourbon brands in India include Jack Daniel’s, Jim Beam, Woodford Reserve, and Maker’s Mark.
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