NEW DELHI: India has reduced import duty on bourbon whiskey to 50%, according to a notification issued by the Ministry of Finance (Department of Revenue) dated February 13, 2025. The reduction came just ahead of Prime Minister Narendra Modi’s meeting with US President Donald Trump where they discussed increasing trade with each other.
Bourbon whiskey, which mainly originates from the US, attracted an import duty of 150% earlier. However, there has been no reduction in basic customs duty on the import of other liquors. They would continue to attract 100% duty.
“It is obvious that as India seeks to integrate more into the global economy, there is an increasing realisation that the import duties in India on alcohol at 150% are way too high to sustain for too long and will need be reduced in line with reduction in general tariff rates,” said Vinod Giri, Director General of Brewers Association of India.
He added that Bourbons, like Harley, may be small import tickets but have high optics value due to their deep association with pax Americana, and hence this out of turn cut is to reassure the USA of Indian intent and to pre-empt any retaliatory action by leveraging a device that costs little to India.