India’s AlcoBev market size of $52.4 billion is targeted to touch $64 billion by 2030, according to a report by the International Spirits & Wines Association of India (ISWAI).
The report titled “Economic Value of the Indian Alcoholic Beverage Industry” noted that with the current market size, roughly 2 per cent of the country’s nominal GDP, the Indian AlcoBev industry is significant and burgeoning (₹3.9 lakh crore, including country liquor).
Global market revenues
The future projections ensure India’s position as the fifth-largest contributor to global market revenues in the near to medium term, the report noted.
Nita Kapoor, CEO of ISWAI, said “The alcohol industry holds a vital position within the national economy, presenting opportunities for growth, job creation and revenue generation. As we look to the future, the importance of the alcohol industry in India is poised to expand. Therefore, it is crucial to simplify its operational complexities, enhance its Ease of Doing Business (EODB) and unlock its full growth potential.”
In the fiscal year 2021, the industry contributed a significant ₹2.4 lakh crore in indirect taxes to the State governments, representing many income streams. Customs duty on alcoholic beverages alone accounted for ₹2,400 crore.
The alcohol revenues represent 1.2 per cent of India’s nominal GDP, 7.7 per cent of the total tax collection and 11.7 per cent of the nation’s indirect tax revenue. The sector contributes a significant 24.6 per cent of the overall tax revenues of the state, the report noted.
The scope of the alcohol industry in terms of employment is remarkable at a staggering 79 lakh individuals, both directly and indirectly. This accounts for 1.5 per cent of the total manpower employed in the country.
An enabling policy environment for the alcoholic beverage industry can thus drive investments, jobs and exports. India-manufactured alcoholic beverages have large untapped export potential and should be treated like any other industry, the report noted.