India to Slash 150% Tariff on Irish Whiskey Under EU Trade Agreement

A selection of Jameson Single Pot Still Irish Whiskey bottles on display in a Duty Free shop at Dublin Airport, in Dublin, Ireland, on February 17, 2023. (Photo: Artur Widak/NurPhoto via AP)

India will reduce its 150% tariff on Irish whiskey under a new free trade agreement with the European Union, a move that could significantly expand one of the world’s fastest-growing export markets for Irish distillers.

Speaking in Delhi, India’s External Affairs Minister Subrahmanyam Jaishankar told the Business Post that spirits are included in the EU-India trade agreement.

“I think we will see that the tariffs on Irish whiskey come down,” Jaishankar said.

India currently imposes a 150% import tariff on spirits, including whiskey, although state and territorial excise taxes can push the effective tax burden even higher.

The tariff reduction is expected to provide a major opportunity for Irish whiskey producers, who have increasingly targeted India as its middle class expands and demand for premium imported spirits grows.

According to Bord Bia, Irish whiskey exports to India surged 107% in 2024, highlighting the country’s growing importance despite steep import duties.

The development also comes as many Irish distillers continue to navigate a 15% tariff on exports to the United States, while whiskey produced in Northern Ireland remains exempt under separate trade arrangements.

India has long maintained some of the world’s highest alcohol import tariffs to protect its domestic spirits industry, which includes a large number of both premium and value-priced whiskey producers. Under the new EU trade agreement, those tariffs are expected to be gradually reduced alongside duties on a wide range of other goods and services.

The landmark trade deal was signed by European Union and Indian leaders in January following nearly two decades of negotiations. It is expected to take effect in 2027 after the legal text is finalized.

Ireland is expected to play a key role in implementing the agreement during its upcoming presidency of the Council of the European Union. Foreign Affairs Minister Helen McEntee is scheduled to meet virtually with Jaishankar to discuss bilateral relations and the trade agreement ahead of Ireland assuming the presidency.

Beyond spirits, the agreement is expected to lower tariffs and reduce regulatory barriers across sectors including pharmaceuticals, medical technology, financial services and digital trade.

For Irish whiskey producers, however, the tariff reduction could represent one of the agreement’s most significant commercial wins, opening greater access to the world’s largest whiskey market by volume.