India reduces bourbon whiskey tariff from 150% to 50%

Notified on 13 February by the department of revenue

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Bourbon
In 1964, Bourbon was recognized by the US Congress as a 'distinctive product of the United States'. Photo IFB

India has cut customs duty on the Bourbon whiskey, made from corn and known for its mild sweet taste, from 150% to 50%. The rate cut, which comes amid US president Donald Trunp’s criticism of India’s high tariffs, was notified on 13 February by the department of revenue . All other imported alcoholic beverages will continue to attract 100% import duty.

Bourbon is a type of American whiskey that is aged in charred oak barrels made with at least 51 % corn — which gives it its distinct flavor. 

In 1964, Bourbon was recognized by the US Congress as a ‘distinctive product of the United States’. The largest bourbon distillers in the US are from the states of Kentucky and Tennessee.

Major brands of bourbon whiskey available in India include, Jack Daniel’s, Jim Beam, Woodford Reserve, Maker’s Mark, Gentleman Jack, and Old Forester.

According to reports, the government has levied an additional 50% agricultural cess over and above the 50% import duty under the Agricultural Infrastructure and Development Cess. American Bourbon whiskey accounts for around one-fourth or 25% of all liquor imports in India. In 2023-24, India imported bourbon whiskey worth US$ 2.5 million. 

In a joint statement issued by India and the US after prime minister Narendra Modi with Trump, both countries have pledged to more than double the two-way trade to US$ 500 billion by 2030 and announced plans for a bilateral trade agreement to bring down duties and increase market access in both nations.

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Naresh Khanna – 10 February 2025

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