Ahead of crucial bilateral talks between Indian Prime Minister Narendra Modi and former U.S. President Donald Trump, India has significantly reduced import duties on American bourbon whiskey. The duty has been slashed from 150% to 50%, providing a major boost for U.S. liquor companies in the Indian market.
Tax Reduction on Bourbon whiskey:
Effective from: February 13
Applicable only to: Bourbon whiskey
Other foreign liquors: Will continue to face a 100% import duty
Additional Agricultural Cess: 50% under AIDC, impacting final pricing
Bourbon Whiskey Growing Market in India
Bourbon whiskey currently accounts for 25% of India’s total whiskey imports, with the Indian market witnessing a steady rise in demand. In FY 2023-24, India imported $2.5 million worth of bourbon whiskey, with key exporting nations being:
USA – $0.75 million
UAE – $0.54 million
Singapore – $0.28 million
Italy – $0.23 million
Modi-Trump Meeting: A Strategic Trade Move
During their meeting, trade agreements remained a key discussion point between Modi and Trump. Trump lauded Modi as a “great leader”, emphasizing a future US-India trade deal that aims to boost bilateral trade beyond $500 billion by 2030.
What is Bourbon Whiskey?
Bourbon is a uniquely American whiskey, legally required to be at least 51% corn-based and aged in charred oak barrels, giving it a distinctively smooth, slightly sweet flavor. Like Scotch can only be produced in Scotland, bourbon can only be made in the United States, primarily in Kentucky and Tennessee.
Top Bourbon Brands in India:
Jack Daniel’s
Jim Beam
Woodford Reserve
Maker’s Mark
Gentleman Jack
Old Forester
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