Indian Economy News

The ISWAI report has predicted that by 2030, India's AlcoBev sector will reach US$ 64 billion

  • IBEF
  • November 7, 2023

According to a report by the International Spirits & Wines Association of India (ISWAI), India's alcoholic beverage market is predicted to reach US$ 64 billion over the next five years, ensuring India's ranking as the fifth-largest contributor to global market revenues in the near to medium term. It stated that the sector, which with an estimated market size of US$ 52.4 billion in 2021, made up about 2% of the nominal GDP of the country and is still a significant industry (Rs. 3.9 lakh crore (US$ 47 billion), including country liquor).

According to ISWAI, the industry contributed to the state governments a substantial Rs 2.4 lakh crore (US$ 29 billion) in indirect taxes in the fiscal year 2021, representing many income sources. Just the customs duties on alcoholic beverages brought in Rs. 2,400 crore (US$ 288.3 million). The alcohol industry's revenues account for 1.7% of India's nominal GDP, 7.7% of all taxes collected, and 11.7% of indirect tax income in the country. According to the statement, the industry accounts for a significant 24.6% of the states' total own tax receipts.

Recently, ISWAI released a report titled "Economic Value of the Indian Alcoholic Beverage Industry," which examines the vital elements and significant roles that the Indian AlcoBev industry plays.

As per Mr. Nita Kapoor, the Chief Executive Officer of ISWAI, “This is a significant moment for ISWAI and the broader industry, affirming the sector’s substantial relevance to the nation. The AlcoBev Industry serves as a pivotal economic engine, making it imperative for pertinent stakeholders to recognise and value our sector’s economic contributions.”

In 2021, around 1,235 million litres of additional neutral alcohol (ENA) were used in the production of ready-to-drink alcoholic drinks and Indian-made foreign liquor (IMFL), as per the report.

It is anticipated that 1.9 million tonnes (MT) of grain are needed to create 741 million extra litres of neutral alcohol for IMFL. This represents 0.6% of the 316 MT of grain that India will produce overall in 2021-22.

To add to this, over 3,623,057 and 724,611 farms respectively provide grain for ENA. Grain, sugarcane, and grapes used for ENA for spirits and wine are produced by 2.9% of the workers in the "agriculture, hunting, forestry, and fishery sectors."

Also, the Rs. 28,000 crore (US$ 3.36 billion) in sales of alcoholic beverages account for roughly 14-19% of the total income of the organised food and beverage sector.

There are an astounding 79 lakh people employed by the alcohol sector, both directly and indirectly. This represents 1.5% of all the labour force that is employed in the nation.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.