India has significantly reduced import duties on bourbon whiskey by 66.6%, marking a major step in strengthening trade ties with the U.S.

Announced just before bilateral talks between Prime Minister Narendra Modi and then-U.S. President Donald Trump, the move brings bourbon's import duty down from 150% to 50%. However, an additional 50% Agricultural Infrastructure and Development Cess (AIDC) still applies.

Bourbon, a uniquely American whiskey made primarily from corn, accounts for 25% of India's whiskey imports. In 2023-24, India imported $2.5 million worth of bourbon, with the U.S. contributing $0.75 million.

Other key suppliers included the UAE, Singapore, and Italy. With reduced tariffs, demand for popular brands like Jack Daniel's, Jim Beam, and Maker's Mark is expected to rise.

During their meeting, President Trump praised Modi as a "great leader" and admitted, "He is a much tougher negotiator than me." The two leaders committed to more than doubling bilateral trade to $500 billion by 2030, with discussions on a broader trade agreement to reduce duties further.

Bourbon, officially recognized as a "distinctive product of the United States" by Congress in 1964, is primarily produced in Kentucky and Tennessee.

With India's whiskey-loving consumers gaining greater access to American brands, this tariff cut could pave the way for stronger economic ties between the two nations, one sip at a time.