India’s decision to lower import duties on American bourbon whiskey has been welcomed by US liquor makers, but Indian distillers are not entirely on board. While they aren’t against reducing tariffs, they are pushing for a phased approach and stronger measures to prevent dumping.
On Friday, the Indian government reduced tariffs on bourbon whiskey from 150% to 100%. This move comes after repeated criticism from former US President Donald Trump, who had called the high import duties in India “unfair.” With this change, US brands are expected to gain better access to the Indian market.
US-based bourbon producers, including Varchas Whiskies—crafted by Shankar Distillers in Troy, Michigan—applauded the decision. They see this as a step forward in strengthening trade ties between the two countries.
Bourbon is a type of American whiskey primarily made from corn, with at least 51% of its mash bill consisting of the grain. It is aged in new charred oak barrels, giving it a distinct caramel and vanilla flavour. Originating in Kentucky, bourbon is subject to strict production regulations under US law, including specific aging requirements and distillation standards to maintain its unique character.
However, Indian liquor manufacturers are voicing concerns. The Confederation of Indian Alcoholic Beverage Companies (CIABC) has reportedly said that while they are not opposed to duty reductions, they want them to be introduced in stages rather than in one go.
“The government needs to safeguard the interests of Indian liquor manufacturers while deciding on issues related to customs duty cuts (BCD+AIDC) and other concessions under FTAs. Though we have already recommended cutting basic customs duty on spirits over 10 years, we also want to ensure better international market access, especially in Western countries, and safeguard the interests of Indian companies against any dumping of products through a transfer price mechanism at lower prices specifically for India,” Anant S Iyer, Director General of CIABC told BL.
The CIABC has urged the government to address these concerns as part of ongoing free trade agreement (FTA) negotiations. They argue that while the move benefits US liquor brands, Indian alcoholic products still face multiple non-tariff barriers in global markets.
“We need effective measures to curb the dumping of imported spirits and ensure fair access for Indian products abroad,” CIABC reportedly told.
