New Delhi: India on Friday reduced the import duty on bourbon whiskey to 50%, marking a key development in India-US trade relationship. The announcement came just before Prime Minister Narendra Modi’s meeting with US President Donald Trump as part of efforts to strengthen bilateral ties. However, this reduction applies only to bourbon whiskey, with other imported liquors still attracting 100% customs duty.
The reduction in import duty, from the previous rate of 150%, was officially notified by the Department of Revenue. Bourbon whiskey, primarily exported from the United States, accounts for one-fourth of all such liquor imported into India. This move is expected to boost trade between the two nations and enhance market access for US whiskey producers.
India-US mega trade deal
During his US visit, Prime Minister Modi announced that India and the US have set a target to double their bilateral trade to $500 billion by 2030. PM Modi emphasized the importance of concluding a mutually beneficial trade agreement soon to achieve this target.
Speaking at a joint press conference, PM Modi said, “We have set ourselves the target of more than doubling our bilateral trade to attain $500 billion by 2030. Our teams will work on concluding a mutually beneficial trade agreement very soon.”
India-US trade partnership has already reached a record $129.2 billion in 2024. With this reduction in customs duty on bourbon whiskey, the two nations aim to further deepen their trade ties while enhancing economic cooperation, as reported by Reuters.
What is bourbon whiskey?
Bourbon whiskey holds a special place in American culture. Declared a “distinctive product of the United States” by the US Congress in 1964, bourbon is a type of whiskey that must be made primarily from corn (at least 51%) and aged in new, charred white oak barrels. It cannot contain added colors or flavors and must meet strict alcohol-proof requirements.
Though bourbon was first made in Bourbon County, Kentucky, it can now be produced anywhere, provided it adheres to the manufacturing standards. Used barrels from bourbon aging are often repurposed to age other liquors, such as single malt scotch.
Bourbon whiskey is known for its versatility and flavor profile, which includes notes of vanilla, oak, and caramel. It serves as a base for popular cocktails like the Old Fashioned, Manhattan, and Mint Julep, the official drink of the Kentucky Derby.
India imported bourbon whiskey worth $2.5 million in the 2023-24 period. The US was the largest exporter, contributing $0.75 million of this total. Other countries like the UAE, Singapore, and Italy also exported smaller quantities.
