The Indian government has reduced import duties on bourbon whiskey from 150% to 100% and lowered tariffs on several wines under U.S. pressure. This move has raised concerns among Indian winemakers, who fear increased competition from cheaper imports. The duty on wines made from fresh grapes, vermouth, and other fermented beverages was also cut to 100%, with imports in these categories totaling $1 billion last year.
For bourbon, a 50% customs duty and a 50% agricultural cess have been imposed, with U.S. bourbon imports valued at $0.8 million last year. The tariff reductions were announced just before Prime Minister Modi’s meeting with U.S. President Trump, where tariffs were a key discussion point.
Indian alcoholic beverage industry leaders, including the Confederation of Indian Alcoholic Beverage Companies (CIABC), have urged states to revoke excise concessions on imported liquor, warning of negative impacts on domestic producers. They also highlighted non-tariff barriers restricting Indian liquor exports, such as the UK’s three-year maturation requirement for whisky.
CIABC’s Director General, Anant S Iyer, called for phased tariff reductions over 10 years and urged international markets to recognize Indian spirits and wines on par with global brands. He emphasized the industry’s economic contributions, including Rs 3 lakh crore in state revenues and significant employment support. The tariff cuts are part of broader trade negotiations with the U.S., aimed at securing a potential trade deal.
More on the story in Times of India and The Indian Express.