India drops customs duties on imported alcohol

India drops customs duties on imported alcohol India's Central Board of Excise and Customs on Tuesday agreed to drop customs duties of up to 150 percent on imported beer, wine and liquor, the Times of India reported.
   The decision comes as a fillip to overseas alcohol producers, who long have viewed India as a huge potential growth market but saw stiff import duties as a major barrier to market entry. Domestic alcohol producers are unlikely to applaud the decision, however. For example, India is the world's largest consuming nation of whisky, though most of it is produced domestically.
   European and U.S. alcohol makers this year took their case over Indian duties to the World Trade Organization, charging that some imported alcohols were incurring duties of up to 500 percent of the wholesale price. Trade representatives in both regions said the duties were overly protectionist.
   In the short term, the most significant effect will be an often steep reduction in prices for imported alcohol.