Get all your news in one place.
100's of premium titles.
One app.
Start reading
The Economic Times
The Economic Times
Michael Bilello

Trade, tariffs & taste: American whiskey pushes for a fair pour in India

Washington: US trade representative Jamieson Greer's just-concluded visit to New Delhi could mark the final stretch of a new US-India trade framework. American whiskey needs to be part of that trade deal.

India is already the world's largest whiskey market by volume, with a rapidly expanding consumer class, a sophisticated hospitality culture, and growing demand for premium, authentic products with identity and meaning. If the US and India reach a trade framework that gives American whiskey commercially meaningful access, India could become one of the most important export markets for American whiskey anywhere in the world.

American whiskey begins with US farmers growing corn, rye, wheat and barley. It depends on American white oak, barrel makers, coopers, distillers, warehouse teams, logistics providers, exporters, restaurants, bars, retailers, tourism and hospitality. At a challenging moment for the category, American whiskey needs global markets that match its ambition, quality and long-term supply-chain investment. India is one of those markets.

The opportunity isn't theoretical. Over the past months, American Whiskey Association (AWA) has engaged directly with GoI, diplomatic, policy and business stakeholders to ensure American whiskey is understood as a priority US agricultural, manufacturing and export category. At the same time, AWA has been actively engaged with the Trump administration and US trade officials to ensure American whiskey is part of the US-India trade conversation.

President Trump and PM Modi have an opportunity to deliver a trade framework that's commercially meaningful, strategically important and beneficial to both countries. If American whiskey is included in a serious way, the deal can support US farmers, strengthen rural manufacturing, create new export opportunities, and reinforce the broader partnership between the world's largest democracy and the world's largest economy.

But the key phrase is meaningful access. Today, the playing field is not level. Bourbon whiskey, even after recent tariff movement, still faces a central import-duty burden of roughly 100% before state-level taxes, fees, distribution costs and other market charges are added. Other whiskey styles like American rye whiskey, Tennessee whiskey, American single malt whiskey and wheat whiskey generally face duties of up to 150% before those same state-level and value-chain costs are applied.

That means an American whiskey bottle can become significantly more expensive before it ever reaches an Indian consumer, bartender, retailer or restaurant. That matters even more because other globally recognised whiskey/whisky categories have secured, or are positioned to secure, more favourable tariff treatment in India through their own trade agreements.

Scotch whisky has already received a clearer tariff pathway through the Britain-India FTA. European spirits, including Irish whiskey, are also being advanced through broader European trade efforts. US whiskey simply needs the same chance.

Indian consumers are already asking for more choice, more quality and more versatility at a price that reflects the product, not layers of avoidable friction. American whiskey can meet that demand. It brings depth, age, mixability, authenticity and a distinctive sense of place. But to be truly approachable for Indian consumers, bartenders, restaurants and retailers, it must be able to reach the market at a price that allows its quality and versatility to speak for itself.

Tariff reduction matters. But it's only part of the equation. The real objective is market access that works in practice: ability to enter the market, move through the value chain, navigate state-level taxes and distribution rules, reach bars, restaurants, retailers and consumers, and be recognised for what American whiskey is - a premium, authentic, 'Made in America' product with a real sense of place.

This is not about replacing India's own whisky tradition and vibrant domestic market. The opportunity is to expand consumer choice, complement existing preferences, and introduce more Indian consumers to the quality, heritage and range of American whiskey. In a market that already understands whiskey/whisky, American whiskey does not need to explain why the category matters. It needs the chance to compete fairly.

India is not a short-term replacement for established American whiskey markets but something different and potentially larger: a defining long-term opportunity. American whiskey is agricultural, industrial, cultural, premium, innovative and export-ready. Now, the task is to make sure market access matches the opportunity.

If the US and India deliver a trade framework in the coming days that gives American whiskey a fair chance to compete, the winners will not be limited to distillers, but also farmers, barrel makers, rural workers, logistics providers, hospitality businesses, exporters and consumers in both countries. That is the promise of fair trade.

And if this deal is done right, India may help define the next chapter of American whiskey's global future.

The writer is president-CEO,American Whiskey Association

Sign up to read this article
Read news from 100's of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.