India Reduces Bourbon Whiskey Tariff to 100%: Impact on Imports and Trade

What is Bourbon Whisky?
Bourbon whisky is a type of American whisky derived mostly from corn (at least 51%), developed in new charred oak barrels. Bourbon is known for its rich and creamy flavour, with unique notes of vanilla, caramel, and wood.

What was the tax on that whisky?
India has its own tax system for imported liquors. Previously, taxes on imported alcohol, especially bourbon whisky, in India the tariff might range from 150% to 200%, depending on state rules and special duties placed on foreign alcohol imports.

India supply
Bourbon whisky in India is typically supplied by popular worldwide liquor brands such as Jim Beam, Jack Daniel’s, Maker’s Mark and Wild Turkey, among others.

What is the market for the whisky in India?
The bourbon whisky market in India has grown significantly in recent years, due to an increase in the number of wealthy buyers and rising demand for premium international alcohol. Bourbon whisky is especially popular in cities like Mumbai, Delhi, and Bangalore, where consumers are more likely to buy premium alcohol.

How many litres of whisky were previously imported into India?
Before taxes and trade restrictions, India imported around 4-5 million litres of whisky (both Scotch and American) per year.

How Will It Affect the Indian Economy?
1. Government Revenue
2. Domestic factories
3. Premium Liquor Market Growth
4. Employment and Investment
5. Consumer Spending

Current Taxes
Beginning of February 13, 2025, India cut its import duty on bourbon whisky from 150% to 100%. This decrease consists of a 50% base customs charge and a 50% extra levy. Other alcohol goods remain subject to the old 150% duty. This adjustment aims to enhance trade relations with the United States and will likely favour American bourbon brands such as Jim Beam.

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