India has slashed import duty on bourbon whiskey to 50 per cent as it warmed up to negotiating a mega trade deal with the US.
The reduction in customs duty on bourbon whiskey was notified on February 13 just ahead of Prime Minister Narendra Modi’s talks with US President Donald Trump.
However, there has been no reduction in basic customs duty on import of other liquors. They would continue to attract 100 per cent duty.
The US is the primary exporter to bourbon whiskey to India accounting for about one-fourth of all such liquor imported into India.
As per the notification issued by the Department of Revenue, bourbon whiskey would now attract 50 per cent customs duty on its import.
India has imported bourbon whiskey worth USD 2.5 million in 2023-24. 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).
India and the US have resolved 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.