Indian alcobev industry seeks clarity on US tariffs

The Indian alcobev industry is closely monitoring tariff developments, particularly regarding the United States. Anant S. Iyer, Director General of the Confederation of Indian Alcoholic Beverage Companies (CIABC), told a news outlet that the sector is seeking clarity on exact tariffs for spirits and wines.

In February this year, India cut bourbon duties from 150 percent to 100 percent, but US imports remain relatively small at $24-25 million compared to imports from the UK and EU. The CIABC is concerned that concessions to the US could set a precedent in Free Trade Agreement (FTA) negotiations, weakening India’s position.

Anant highlighted that the industry faces high operational costs, 50-75 percent more than in developed countries. The CIABC has urged the government to protect domestic producers and recommend a staggered customs duty reduction over 10 years, warning against abrupt cuts that could disrupt the sector.

According to Export Import Data Bank (EIDB), India imported spirits worth $23.09 million in FY24 as against $8.03 million exported. While lower import duties could reduce prices, Indian premium liquor may become less competitive. Some states impose lower taxes on imported spirits while heavily taxing domestic brands, which Iyer called “discriminatory”.