In February 2023, India reduced bourbon whiskey tariffs from 150% to 100%, responding to U.S. trade concerns. Bourbon is a distinct American spirit, primarily made from corn, requiring aging in new charred barrels without additives. This spirit’s versatility allows it to be used in various cocktails, solidifying its popularity.
Bourbon whiskey, recognized as a “distinctive product of the United States” by Congress in 1964, has recently gained visibility as India decreases tariffs on its import from 150% to 100%. This change, prompted by US President Donald Trump’s concerns about the high levies in India, aims to promote trade as Prime Minister Narendra Modi engages in discussions with US leaders.
As of February 13, the customs duty on bourbon has been officially reduced, resulting in a total rate of 100%. This comprises a basic customs duty of 50% plus an additional levy also at 50%. The United States is the primary supplier of bourbon whiskey to India, contributing to around 25% of the country’s bourbon imports, which amounted to USD 2.5 million in the 2023-24 period.
Efforts are underway to expand trade relations between Washington and New Delhi, with a goal of increasing bilateral trade to USD 500 billion by 2030 and reducing duties to enhance market access.
Bourbon whiskey is a unique American spirit comprising at least 51% corn. While often assumed to originate solely from Bourbon County, Kentucky, it can be produced anywhere in the U.S. as long as production meets specific requirements.
Key regulations dictate that bourbon must be aged in a new, charred white oak barrel. This aging process, which precludes any additives of flavor or color, ensures a distinct taste profile with primary notes of vanilla, oak, and caramel. Furthermore, its alcohol content should range from 80 to 160 proof.
Versatile by nature, bourbon serves as a base for numerous cocktails, including classic drinks such as the ‘Old Fashioned’, ‘Mint Julep’—the official drink of the Kentucky Derby, and the ‘Manhattan’. Its flavor foundation makes it a preferred choice for varied cocktail creations.
The recent reduction in tariffs on bourbon whiskey by India highlights the increasing trade relations with the U.S. Bourbon itself is a distinctive spirit with specific production criteria, making it a versatile addition to many cocktails. The move may enhance market access and contribute to the goal of significantly increasing bilateral trade by 2030.
Original Source: www.hindustantimes.com
