DISCUS for full American Whiskey access

In a pivotal moment for U.S.-India trade relations, India has made a bold move by slashing the customs duty on American Bourbon from 150 percent to 50 percent. This landmark decision is set to open new avenues for collaboration and growth, particularly within the thriving Indian whisky market. Leading the charge is Chris Swonger, President and CEO of the Distilled Spirits Council of the United States (DISCUS), who views this reduction as a crucial step, albeit a partial one, towards broader trade expansion.

While American distillers welcome this breakthrough, Swonger emphasises the importance of extending similar reductions to other American whiskeys, such as Single Malt and Rye, to unlock the full potential of this bilateral trade opportunity. With ambitious plans underway, DISCUS aims to capitalise on this new development and deepen American Bourbon’s presence in India, an endeavour that promises to strengthen the bond between American spirits and Indian consumers in the years to come.

◉ Vikal Samdariya

India’s historic decision to slash the custom duty on American Bourbon from 150 percent to 50 percent marks a major shift in the U.S.-India trade relations. How was this breakthrough received by bourbon and other whiskey producers across the United States?

India’s announcement to reduce its tariff on Bourbon was welcomed by the U.S. distillers and viewed as an opportunity to increase exports to the world’s largest whiskey market. However, India continues to impose a 150 percent tariff on other types of American whiskeys, such as American single malt and American rye whiskeys, along with other U.S. spirits. We’d like to see those reduced as well.

The U.S. had earlier proposed a 26 percent reciprocal tariff on Indian exports, following India’s constructive step on tariff reductions. With this decision now postponed for 90 days, do you see this as a window for meaningful engagement? How may this development influence the positive momentum, particularly given India’s significance as a key global market for whisky?

There is a significant opportunity within the next 90 days, particularly in light of the joint statement signed by President Trump and Prime Minister Modi in February 2025, which commits both parties to negotiating a trade agreement. According to media reports, negotiations are currently underway, and both sides have agreed upon the terms of reference for the agreement.

You’ve been a strong proponent of a “zero-for-zero” tariff model with key U.S. trading partners. Would this vision include India? If so, how do you see such a framework benefitting both U.S. distilled spirits exports to India and Indian alcoholic beverages entering the U.S. market?

We believe there is an opportunity to secure a reduction of India’s tariff on the U.S. spirits. Setting aside the additional 10 percent universal tariff on imports from India, the U.S. and the European Union agreed to eliminate nearly all of their tariffs on imported spirits on a most-favoured-nation basis (MFN) in 1997. This led to a nearly 450 percent increase in bilateral trade in spirits between the U.S. and the EU. In fact, the U.S. has fair and reciprocal zero-for-zero tariffs with 51 countries.

The latest DISCUS export data for 2024 indicates a decline in bourbon shipments to India and other key markets. What were the driving factors behind this drop, and what corrective or growth-focused measures are being considered to reinvigorate exports to India, especially in the light of duty reduction?

Following the Covid-19 pandemic, there was a significant rise in imports of wines and spirits from around the world to India. However, in 2024, the market stabilised, leading to a decline in imports, primarily due to importers holding increased stocks in their warehouses. The year 2024 was challenging globally for the spirits sector, including India, which led to a decline in imports, not limited to bourbon.

With the reduction in tariffs on bourbon, there is a growing interest from importers and global spirits companies to expand their portfolios. This is driven by the growing popularity of cocktails, where bourbon is often used as the base spirit. As Indian consumers continue to seek better quality and experiment with different spirits, it will lead to increased consumer demand for bourbon.

Boosting Bourbon Since 2009 

Since 2009, DISCUS has been promoting American spirits in India with the support of USDA, aiming to educate Indian importers and the media about the distinctiveness and versatility of American whiskeys and other spirits. In 2023, DISCUS launched a yearround campaign in partnership with the USDA. As part of this campaign, the in-market consultant conduct training, seminars, and account visits in key Indian cities to educate hospitality industry members about American whiskeys, including their heritage, taste profiles, production processes, proper tasting techniques, and their use in cocktails.

Despite the successful entry of global bourbon giants like Brown-Forman, Jim Beam, and Sazerac into India, and growing interest from the middle class and Gen Z to explore new whisky experiences, what has held back broader participation from other American companies in tapping the full potential of the Indian alcobev market?

India has undergone significant evolution over the past four years, with the introduction of new bourbons and the launch of new labels by global spirits companies operating in the country. The previously timid participation in the market has transformed, as evidenced by the increasing number of distilleries and brands exploring opportunities to participate in market promotions in India sponsored by DISCUS through its partnership with the U.S. Department of Agriculture (USDA).

As a leading trade body, what role does DISCUS play in promoting American spirits globally? More specifically, how does it plan to strengthen bourbon’s footprint in India through partnerships, market-building efforts, and deeper consumer engagement? Can we expect more brands coming to India in the near future?

DISCUS, through its partnership with the USDA, is working to promote American spirits in India. A big part of the programme is introducing new brands to the Indian market. Currently, a number of small U.S. craft distillers are participating in Indian promotional events, including Proof and Wood, Uncle Nearest, and Virginia Distillery Company.

DISCUS plans to participate in ProWine Mumbai (October 31-November 1) and travel with a delegation of U.S. distillers who are looking to break into the Indian market.