India, March 12 -- High on optics, low in immediate impact. That is the effect of the recent move by India to reduce tariff on bourbon whisky imports from all countries, from 150% to 100%, after US President Donald Trump criticised India's "unfair" tariffs on American goods, particularly in the alcohol sector. Indians lean towards whisky, along with beer, and the share of bourbon whisky - of which the US is a major producer - in the overall Indian alcohol pie is very small.

The same is the case with the share of all alcohol imports in India's domestic consumption. But if the duty cut on bourbon whisky leads to more import-duty cuts, it could potentially mean lower customs duty collections for the government, competitive pressures for Ind...