In a move to strengthen trade relations with the United States, India has reduced the import duty on bourbon whiskey to 50%. The decision was announced on February 13, just ahead of Prime Minister Narendra Modi's discussions with US President Donald Trump.

This reduction applies specifically to bourbon whiskey, with the customs duty dropping from 150% to 50%. However, there has been no change in the import duties on other types of liquor, which will continue to be taxed at 100%.

The US is the largest exporter of bourbon whiskey to India, accounting for approximately 25% of all bourbon imported into the country. In the fiscal year 2023-24, India imported bourbon whiskey worth USD 2.5 million. Of this, USD 0.75 million came from the US, with other major suppliers including the UAE (USD 0.54 million), Singapore (USD 0.28 million), and Italy (USD 0.23 million).

This move comes as part of broader efforts by India and the US to boost bilateral trade. Both countries have set a target to more than double their two-way trade to USD 500 billion by 2030. As part of these efforts, the two nations have also committed to negotiating a bilateral trade agreement aimed at reducing tariffs and increasing market access.

PTI inputs