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The United States had claimed that the layers of custom duties imposed by India on wines and spirits was in breach of international trade rules.
In the conclusion of its ruling, the WTO's dispute panel said that the United States has "failed to establish that the additional duty on alcoholic liquor is inconsistent" with India's WTO commitments.
The US had filed the complaint against India in May 2007, claiming that additional duties on alcoholic beverages were as high as 550% of the value of the product.
Its move came after similar action by the European Union earlier in November 2006.
However, the EU dropped its complaint after India modified its legislation and cut some of the tariffs in July 2007.
The US, however, maintained its claim.
India's 1.1 billion strong population and fast-growing middle class represent a potentially huge market for wine and spirits exporters.
- AFP
