US Bourbon Whiskey Set To Get Cheaper In India

The reduction in tariffs, however, is specifically for bourbon whiskey. All other imported alcoholic beverages will continue to attract earlier import duty

Bourbon whiskey is set to get cheaper in India. The government slashes import duties on it, making premium US brands like Jack Daniel's and Jim Beam more affordable in India.

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 other issues, India slashed import duty on bourbon whiskey from 150 per cent to 50 per cent.

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 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 earlier import duty.

The government, however, has additionally levied a 50 per cent agricultural cess over and above the 50 per cent import duty under AIDC or Agricultural Infrastructure and Development Cess for Bourbon.

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.

However, recently the global whiskey powerhouse Beam Suntory has started bottling in India its flagship brand Jim Beam betting on India's whisky habits. This is one of the rare instances of the largest-selling bourbon being bottled outside the home market US, underscoring the significance attached to India, the world's biggest whisky consumer.

The origin of bourbon dates back to the early days of American history. It was in 1789 when the United States Congress passed the Whiskey Act. This legislation taxed distilled spirits. It ignited rebellion processions against the government, which were known as the "Whiskey Rebellion." To support the economy and encourage domestic production, Congress enacted another act. The Excise Tax Reduction Act of 1791 minimized the tax burden on the production of whiskey.