Image showing whisky being poured into a glass. For representational purposes.
Credit: iStock Photo
Shortly after Prime Minister Narendra Modi flew to the US to meet American President Donald Trump, India slashed import duty on bourbon whisky, reducing the rate from 150 per cent to 100 per cent.
While India issued the tariff notification on February 13, the news caught on a day later, and was largely welcomed.
"It signals that the Indian government is willing to explore changes in tariff items for strategic partner countries," Pratik Jain, a partner at PwC India, was quoted as saying after the move.
Indeed, India has a burgeoning liquor market, which is valued at a whopping $35 billion, and industry executives have often criticised high tariffs imposed on foreign liquor imports.
As for bourbon, the US happens to be India's biggest supplier, with the country accounting for almost a quarter of all bourbon imports into India.
In 2023-24, India reportedly imported bourbon whisky worth $2.5 million (over Rs 21 crore by today's exchange rate), and the lower tariffs could see imports rise in the near future.
How much customs duty is charged on foreign liquor in India?
While customs duty on bourbon whisky was slashed by 50 per cent, the notification did not specify changes to the duties levied on other categories of liquor.
The other categories, namely, whisky, cognac, brandy, gin, rum, vodka, tequila, and wine, will continue to attract the same levies as earlier, which stands at 100 per cent.