In a move that is set to make American bourbon whisky more affordable in India, the Indian government has slashed tariffs on the spirit from 150% to 100%. The decision, announced in a government notification dated February 13, 2025, comes amid ongoing trade discussions with the United States led by President Donald Trump.
According to the notification, the basic customs duty on bourbon whisky will now be 50%, with an additional levy of 50%, bringing the total duty to 100%. This reduction is expected to benefit consumers by lowering the cost of popular American brands such as Jack Daniel’s and Jim Beam.
Bourbon whisky, primarily made from corn (maize) and distilled from a fermented mash of grain, yeast, and water, has been a key focus for American trade negotiators. However, there have been no changes to tariffs on other imported liquor products in India.
The tariff reduction coincided with Prime Minister Narendra Modi’s two-day visit to the US, where he met President Trump to discuss bilateral trade and economic cooperation. The Indian spirits industry, valued at $35 billion and home to global players like Diageo and Pernod Ricard, has long criticized India’s high import duties on foreign liquor.
During their discussions, Modi and Trump explored deeper collaboration in defense, energy, and critical technology sectors. Trump indicated that both nations are working toward major trade deals.
“We are going to work with India also. We have separate big trade deals to announce in the very near future. We are going to make some wonderful trade deals for India and for the US,” Trump said while discussing his administration’s trade policies.
PM Modi emphasized India’s commitment to strengthening trade ties, stating that both countries have set an ambitious target of $500 billion in bilateral trade by 2030. He added that officials from both nations are working toward finalizing a mutually beneficial trade agreement.
The reduction in bourbon whisky tariffs marks a significant step in ongoing trade negotiations and could signal further policy adjustments in India’s import duties on foreign goods in the near future.
