Will Slashed Tariffs Make American Bourbon More Accessible To The Indian Consumer?
In a landmark move that prioritises a wide range of trade negotiations between India and America, the former has slashed duty on American bourbon from 150% to a basic custom duty of 50% and an additional 50% levy. With this, the total tariff imposed on bourbon comes down to 100% amidst dialogue between Indian Prime Minister Narendra Modi and American President Donald Trump on improving bilateral trade.
The immediate outcome of this cessation of import tax on bourbon even as duty on most other alcoholic beverages remains unchanged is a dip in the price of this American liquor in India. Despite these relaxations, it will be quite interesting to examine market trends in a consumer space where Scotch whisky or single malt continue to retain the top spot as some of the most preferred whiskies. This, in a market where homegrown brands are also coming up with their own whisky blends which offer good taste and layered flavours.
What works for the American spirit, creating potential in the Indian market is the cocktail space. In a region where mixology cultures are fast proliferating, there is definitely room for a spirit which has been widely used throughout history for blending iconic mixes. The cutting down of taxes in particular can carve room for a more invigorated market for the spirit in India, where $2.5 million worth of bourbon was imported in the 2023-24 fiscal year.
Bourbon At The Beginning
Bourbon’s origins can be traced back to sometime in the 18th century in the American south. Primarily produced in Kentucky, it is a whisky that is traditionally prepared using corn and is associated with a sweet taste as a result of being aged in charred oak barrels. Over time bourbon became so significant to American alcohol production industries that in 1964 the government of this country declared bourbon to be a ‘distinctive product of the United States.’
Now, although Kentucky remains the place where bourbon is by and large produced, it is also made in different places including Tennessee, Texas, Colorado and even California wherein each region brings some of its own flavours into the spirit.
Bourbon Flavours And Tasting Tips
One of the most prominent notes in bourbon is a charred, sweet finish which comes from the oak barrels in which it is stored. The vanilla-like, caramel notes of the drink further build into this flavour whereas a spiciness akin to notes of cinnamon and black pepper emanating from the oak tannins bring more complexity into the spirit. Add to this the processes of fermentation and ageing which further lead to the development of cherry-like, oaky and nutty profiles that become more and more pronounced as the spirit matures.
Such well-made bourbon is generally served in a Glencarin or tulip glass which would enable it to release its subtle yet quite distinct aromas when swirled. Deeply amber spirits are indicative of well-aged bourbons with a highly developed aromatic range. Traditional corn-heavy bourbon whisky carries more of these flavours whereas peppery and dry profiles are characteristic of a spirit which has high proportions of rye. Often, wheated bourbon offers lighter, softer and rounder flavours which makes it an interesting choice for those who are new to bourbon.
Why Is It Different From Scotch?
The most apparent difference between bourbon and scotch is simply the grains which are used to prepare these liquors. Where malted barley is predominantly used to prepare Scotch whisky, the American bourbon is generally produced using corn mixed with rye, wheat and sometimes barley. Moreover, Scotch whiskies carry a very peaty, smoky touch whereas bourbon is known for its sweet flavours and can hardly be characterised as smoky.
Popular cocktails like mint juleps, boulevardier, paper plane and more place this spirit at the centre of their mixology as a result of its caramel-like, sweet yet deep flavour profile. Now, with reduced tariffs, it only remains to be seen how bourbon works with local mixology cultures and flavours as the spirit proliferates across Indian consumer markets.
Also Read: International Whisky Variations: Exploring Single Malts, Blended Whisky, Bourbon And More
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