India has significantly reduced the import duty on America’s renowned bourbon whiskey from an astonishing 150% to 50%. This major tariff cut, which represents a decrease of 66.6%, was announced by the Department of Revenue on February 13, 2025, just before Prime Minister Narendra Modi’s crucial discussions with U.S. President Donald Trump regarding trade matters.

In the lead-up to these high-stakes meetings, India has taken steps to foster trade relations with the U.S. by announcing substantial tariff reductions on several American goods. The new customs duty specifically applies to bourbon whiskey, while other imported alcoholic drinks will maintain a 100% duty. Additionally, a 50% agricultural cess has been imposed over the 50% import duty.

Bourbon whiskey holds a significant market share in India, accounting for 25% of all liquor imports. In the fiscal year 2023-24, India imported bourbon worth USD 2.5 million, predominantly from the United States, which contributed USD 0.75 million.

During their meeting, Trump’s comment highlighted Modi’s effectiveness as a negotiator, emphasizing the bilateral desire to strengthen trade ties. They collectively pledged to more than double the two-way trade to USD 500 billion by 2030 and expressed intentions to establish a bilateral trade agreement aimed at reducing duties and enhancing market access in both countries.

What is Bourbon Whiskey?

Bourbon is a type of American whiskey characterized by its sweet flavor, made primarily from corn (at least 51%). Typically aged in charred oak barrels, bourbon is legally defined and recognized as a distinctive product of the United States since 1964. The predominant distilling regions in the U.S. include Kentucky and Tennessee. Popular bourbon brands available in India consist of Jack Daniel’s, Jim Beam, Woodford Reserve, Maker’s Mark, Gentleman Jack, and Old Forester.

For further details, visit the official announcement here.