New Delhi:
America’s most popular bourbon whiskey, known for its hint of sweetness, has got a sweet deal in India. Hours before PM Modi held bilateral talks with US President Donald Trump, where the two leaders discussed trade and tariffs among several issues, India slashed import duty on bourbon whiskey by as much as 66.6 per cent – effectively making it one-third the cost of it is currently.
In the days and weeks leading up to the key meeting between the two global leaders, India warmed up to negotiating mega trade deals with the US by announcing significant tariff cuts on several US products as a gesture of promoting trade.
The massive drop in customs duty on bourbon whiskey – from 150 per cent to 50 per cent – was notified on February 13 by the Department of Revenue. The reduction in tariffs however, is specifically for bourbon whiskey. All other imported alcoholic beverages will continue to attract 100 per cent import duty.
American bourbon whiskey accounts for as much as one-fourth or 25 per cent of all such liquor imports in India. In 2023-24, India imported bourbon whiskey worth USD 2.5 million. The major exporting countries include the US (USD 0.75 million), UAE (USD 0.54 million), Singapore (USD 0.28 million) and Italy (USD 0.23 million).
At a press briefing at the start of his meeting with Prime Minister Narendra Modi, US President Donald Trump said “Prime Minister Modi is a great leader,” adding that “We’re going to make some wonderful trade deals for India and the US.”
The two leaders held another press conference immediately after the bilateral talks where trade for high on the agenda. On being asked by a reporter about who is a tougher negotiator, Donald Trump said, “He (PM Modi) is a much tougher negotiator than me and he is a much better negotiator than me. There is not even a contest.”
In a joint statement issued by both countries, India and the US have pledged to more than double the two-way trade to USD 500 billion by 2030 and announced plans for a bilateral trade agreement with a view to bring down duties and increase market access in both nations.
WHAT IS BOURBON WHISKEY?
Bourbon is a type of American whiskey which is made from corn. It is known for its mild sweet taste. Aged in charred oak barrels, bourbon is made with at least 51 per cent corn – this is what gives it its distinct flavour. Just like how Scotch whiskey can technically only be made in Scotland, bourbon whisky also can technically be made only in the United States.
In 1964, Bourbon was recognised by the US Congress as a “distinctive product of the United States.” The largest bourbon distillers in the United States are from the states of Kentucky and Tennessee.
Major brands of bourbon whiskey which are available in India include, Jack Daniel’s, Jim Beam, Woodford Reserve, Maker’s Mark, Gentleman Jack, and Old Forester.