The recent bilateral talks between Prime Minister Narendra Modi and President Donald Trump are beginning to bear fruit. In a strategic economic move, India has slashed the import duty on American Bourbon Whiskey from 150% down to 100%, effectively making a dramatic 50% tax reduction. This decision surfaces in the wake of Trump’s pointed criticism of high tariffs in South Asian markets prior to meeting with Modi.
When discussing tariffs, President Donald Trump has frequently noted that India imposes higher taxes compared to any other nation. He cited Harley Davidson's necessity to establish a manufacturing plant in India as a result of excessive taxes. It raises an intriguing question: why did India decide to lower taxes on Bourbon Whiskey? What is the intriguing history of this celebrated spirit and just how extensive is its market...?
According to PTI reports, the United States stands as a leading exporter of Bourbon Whiskey, with a quarter of all imported Bourbon in India originating from America. In the fiscal year 2023-24, India imported Bourbon valued at 2.5 million dollars. Both Washington and New Delhi have set an ambitious target to double bilateral trade to 500 billion dollars by 2030, inclusively focusing on tariff reductions and expanding market access. This proactive step by India aims to elevate the popularity of this whiskey and expand its market footprint.
As media reports confirm, Bourbon Whiskey proudly features as America's sole indigenous spirit, crafted from a blend of corn, wheat, and malt, constituting about 51% corn. The enduring prominence of this whiskey led to the 1964 Congressional declaration of Bourbon as a "Distinctive Product of the United States." This spirit is much more than just a beverage; it is revered as a cultural emblem and unique product.
Source: aajtak
The craftsmanship of Bourbon involves a meticulous aging process in new charred oak barrels. The barrel interiors are charred, imparting complex flavors before the spirit is left to age gracefully. Importantly, no colors or flavors are added to Bourbon Whiskey.
Bourbon traces its historical roots back to the 1800s in Bourbon County, Kentucky. Although this whiskey is now produced globally, its authenticity remains untampered, capturing the hearts of connoisseurs worldwide.
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The craft of Bourbon begins by milling corn and other grains, which are then blended with water to form a rich 'mash'. This mash is subsequently heated, and yeast is added to initiate fermentation. Following fermentation, the mixture undergoes distillation to achieve a higher purity level of alcohol content.
There exist multiple types of Bourbon Whiskey, each distinct in quality and age.
In the fiscal year 2023-24, Bourbon exports from the U.S. to India reached a notable 2.5 million dollars. The demand remains substantial in countries like the European Union, Canada, and Japan, largely due to Bourbon’s distinctive taste and quality. The burgeoning export market for Bourbon is a pivotal component of America's economy. Notably, by 2019, the American whiskey industry’s exports stood at approximately 1.3 billion dollars, where Bourbon played a significant role.
