NEW DELHI: In response to pressure from the United States, the government has reduced the import duty on bourbon whiskey from 150% to 100% and has also lowered tariffs on various wines.
The duty on wines made from fresh grapes, vermouth, and other fermented drinks as well as unadulterated ethyl alcohol with an alcohol content of 80% has been set to 100%. Together, the import of these items totaled approximately $1 billion in the last fiscal year.
For bourbon, the basic customs duty is now established at 50%, with an additional agricultural cess of 50%. Last year, imports for the two categories related to bourbon were estimated at $2.6 million, with $0.8 million coming from the US.
The duty reductions were announced on Thursday, just hours prior to Prime Minister Narendra Modi’s meeting with US President Donald Trump, during which tariffs were a key topic of discussion. Trump reaffirmed his intention to implement what he described as reciprocal tariffs to support American industries. Before meeting Modi, he highlighted that India has some of the highest tariffs globally.
India’s tariffs on whiskey and other alcoholic beverages have raised concerns among various countries, including Australia, the UK, the European Union, Switzerland, and the US. Although India has reduced tariffs on Australian wine under a trade agreement, the UK has been pressing for lower levies on Scotch whisky as part of trade negotiations, while the EU has been advocating for cuts on wines produced within the bloc.
In the Budget presented on February 1, the government had already decreased import duties on a range of products, including premium motorcycles like the iconic Harley Davidson, in an effort to ease tariff pressures. However, this move has not prevented Trump from voicing concerns about duties in India, using Harley Davidson as an example during media interactions.