Trump’s tariff war: Liquor industry protests as India
The government needs to safeguard the interests of Indian liquor manufacturers when deciding on issues related to customs duty cuts and other concessions under FTAs,” the Director General of CIABC said in a statement.
A day after the government slashed duty on bourbon whisky to 50 per cent from 150 per cent, the Indian alcoholic beverage industry urged states to withdraw all excise concessions given to imported liquor, arguing that the customs duty cuts announced Thursday would harm Indian products in both the spirits and wine categories.
This assumes significance as the reduction in customs duty on bourbon whisky was part of broader tariff cuts on a range of items aimed at appeasing US President Donald Trump ahead of Prime Minister Narendra Modi’s visit to the United States. The US had “welcomed”the initial set of tariff cuts, and both countries announced plans for a trade deal.
The Confederation of Indian Alcoholic Beverage Companies (CIABC) urged the government to introduce “stringent and effective measures” to prevent the dumping of imported spirits and to negotiate better international market access for Indian alcoholic products, which currently face several non-tariff barriers. Non-tariff barriers in the UK, for instance, have been a point of contention in India-UK trade negotiations.