India Bourbon Tariff Reduction – Press Release

Press Release

Kentucky Distillers’ Association Celebrates U.S. – India Bourbon Tariff Reduction Agreement

Lower Duty Opens Door to World’s Largest Whiskey Market for Kentucky Bourbon, America’s Only Native Spirit

Lower Tariffs Open India’s Whiskey Market for Kentucky Bourbon

FRANKFORT, Ky. – February 14, 2025 – The Kentucky Distillers’ Association (KDA) hailed the landmark trade agreement between U.S. President Donald J. Trump and Indian Prime Minister Narendra Modi, which reduces India’s tariffs on Bourbon, paving the way for increased exports to the world’s largest whiskey market.

Historic Reduction in India’s Tariffs on Kentucky Bourbon

Under the new agreement, India will lower its tariff on Bourbon from 150% to 100%, significantly improving market access for Kentucky distilleries.

“We have seen worldwide, when trade restrictions are eased, that the elegance and complexity of Kentucky Bourbon attract discerning palates of connoisseurs and new drinkers alike,” KDA President Eric Gregory said.

He emphasized that this tariff reduction is a historic achievement and expressed gratitude for the collaboration between the U.S. and Indian governments.

Key Advocates for Market Expansion

Gregory also praised Kentucky Congressman Andy Barr for his dedication to promoting Bourbon internationally. Barr’s efforts, including his recent meetings with U.S. Commerce Secretary Howard Lutnick and Indian Ambassador Vinay Kwatra, have been instrumental in advocating for Kentucky Bourbon’s success in India.

Congressman Barr stated, “Thoughtful agreements like this will help protect Kentucky jobs and introduce more people around the world to our state’s signature spirit.”

Kentucky’s Bourbon Industry: A Global Powerhouse

Kentucky remains the birthplace of Bourbon, producing 95% of the world’s supply. The industry is a $9 billion economic driver, supporting over 23,100 jobs and generating $2.2 billion in wages and benefits. Additionally, the Kentucky Bourbon Trail® continues to be a major tourism attraction, drawing over 2.5 million visitors annually.

With 15.4 million barrels of aging whiskey—more than three times the state’s population of 4.5 million—Kentucky’s Bourbon industry is thriving.

India: A Fast-Growing Market for Kentucky Bourbon

Currently, India ranks as Kentucky’s 14th largest export market, importing $3 million in whiskey annually. With the tariff reduction in place, this figure is expected to increase significantly, providing new growth opportunities for Kentucky distillers.

“This agreement unlocks more avenues for our distillers to expand, tackling industry headwinds and driving Bourbon’s global presence,” Gregory said.

What’s Next for Kentucky Bourbon in India?

With lower India Bourbon tariffs, Kentucky’s Bourbon industry is poised for greater export growth, increased brand recognition, and deeper consumer engagement in India. As distillers navigate this evolving market, the potential for higher sales and expanded production looks promising.

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