The Indian alcoholic beverage industry is raising concerns after the government slashed customs duty on bourbon from 150% to 100%. This move comes after US President Donald Trump criticized “unfair” levies in the South Asian market. However, with this move, many domestic whiskey and wine producers fear that the low barrier might give way to cheap imports, putting homegrown premium brands at risk.
Reduced Import Duties On Bourbon And Some Wines
The Indian government has reduced import duties on bourbon whiskey from 150% to 100%. It has also lowered tariffs on several wines amid trade tensions with the US.
The duty levied on wines made from fresh grapes, vermouth, and other fermented beverages was also slashed down to 100%. Imports in these categories last year totaled to about 1 billion USD. When it comes to bourbon, a 50% customs duty and a 50% agricultural cess have been imposed.
An excellent meeting with @POTUS @realDonaldTrump at the White House. Our talks will add significant momentum to the India-USA friendship! pic.twitter.com/lS7o4768yi
— Narendra Modi (@narendramodi) February 14, 2025
These tariff slashes were announced just prior to Indian Prime Minister Narendra Modi’s meeting with US President Donald Trump. In fact, tariffs were a key discussion point in their meeting.
Also Read: Beers That Are Not Made Of Barley: Exploring Unique Alternatives
Confederation of Indian Alcoholic Beverage Companies: What Does It Say?
On the other end, the Confederation of Indian Alcoholic Beverage Companies (CIABC) has urged the government to withdraw all state-level excise concessions on imported liquor. The body has also urged the government to impose stricter measures to curb dumping of imported spirits. It has put forth the demand to ensure greater market access for domestic products.
CIABC argues that even though Indian liquor manufacturers aren’t opposing reduction in import duty, they wish that the import duty cuts roll out in a phased manner. It has also stated that while India is reducing import barriers, Indian whiskey still faces trade restrictions in Western markets. An example of the same could be the UK’s mandatory three-year maturation rule. This rule fails to account for India’s tropical climate that accelerates aging.
Also Read: 4 Indian Celebrity Owned Alcohol Brands You Need To Try
Summing Up
Amid US trade tensions, the government has reduced import duties on bourbon and some wines. Should the government step in to protect Indian spirits, or is this a necessary step towards a more globalised market? Let us know your thoughts!
