India Cuts Import Duty on American Bourbon Whiskey by 66.6% Ahead of Modi-Trump Talks

New Delhi: In a significant move to boost trade relations with the United States, India has slashed import duty on American bourbon whiskey by 66.6%, reducing it from 150% to 50%. This decision was announced just hours before Prime Minister Narendra Modi and US President Donald Trump held bilateral talks discussing trade, tariffs, and economic partnerships.

As part of India’s broader efforts to enhance trade ties with the US, the government has announced major tariff cuts on select American products. The duty reduction, which was notified on February 13 by the Department of Revenue, applies exclusively to bourbon whiskey. Other imported alcoholic beverages will continue to attract a 100% import duty.

Boosting Bourbon Imports to India

Bourbon whiskey, known for its mild sweetness and rich flavor, makes up 25% of all imported whiskey in India. In 2023-24, India imported USD 2.5 million worth of bourbon, with major exporting countries including the United States (USD 0.75 million), UAE (USD 0.54 million), Singapore (USD 0.28 million), and Italy (USD 0.23 million).

At the start of his meeting with PM Modi, President Trump praised the Indian leader, calling him a "great leader" and emphasizing the importance of strengthening bilateral trade. In a joint statement, India and the US pledged to double two-way trade to USD 500 billion by 2030, with plans for a comprehensive bilateral trade agreement aimed at reducing tariffs and increasing market access.

What is Bourbon Whiskey?

Bourbon is a type of American whiskey made primarily from corn (at least 51%) and aged in charred oak barrels. This process gives it its distinctive sweet and smoky flavor. Similar to how Scotch whiskey can only be produced in Scotland, bourbon whiskey is legally recognized as a distinctive product of the United States, as declared by the US Congress in 1964.

The largest bourbon distillers are based in Kentucky and Tennessee, with major brands available in India including Jack Daniel's, Jim Beam, Woodford Reserve, Maker’s Mark, Gentleman Jack, and Old Forester.

With this historic tariff cut, bourbon whiskey lovers in India can now enjoy premium American whiskey at significantly lower prices, strengthening trade ties and increasing accessibility to global liquor brands.