From 150% to 50%: India Makes Bourbon Whiskey More Affordable—Thanks to US Trade Talks!

New Delhi: In a move signalling closer trade ties with the United States, India has reduced the import duty on bourbon whiskey to 50%. The reduction, notified on February 13, comes just ahead of Prime Minister Narendra Modi ’s discussions with then-US President Donald Trump regarding a mega trade deal.

Despite the cut for bourbon whiskey, the basic customs duty on other liquors remains unchanged at 100%. The United States, the primary exporter of bourbon whiskey to India, accounts for nearly one-fourth of the total imports in this category. Previously, the import duty on bourbon stood at 150%.

According to a notification issued by the Department of Revenue, bourbon whiskey will now be subject to a 50% customs duty. 

In the financial year 2023-24, India imported bourbon whiskey worth $2.5 million. The key suppliers included the US ($0.75 million), UAE ($0.54 million), Singapore ($0.28 million), and Italy ($0.23 million).

India’s bourbon whiskey market remains niche but is witnessing steady growth, driven by increasing consumer interest in premium spirits. Although bourbon currently accounts for less than 1% of the overall whiskey market in India, rising disposable incomes and a shift toward luxury drinking experiences are fueling its demand.

A key factor contributing to this expansion is the reduction in duties on bourbon whiskey, which is expected to boost imports and enhance its competitive pricing. This move is particularly advantageous for American whiskey producers, with brands like Weller gaining traction among Indian consumers.

In contrast, other imported alcoholic beverages, such as Scotch whisky and wine, continue to attract a 100% customs duty, keeping their prices significantly higher.