ISWAI presents, report ‘Economic Value of the Indian Alcoholic Beverage Industry’ to top bureaucrats in Punjab

Chandigarh, November 6, 2023: The International Spirits & Wines Association of India (ISWAI), the apex body of the premium AlcoBev sector, presented its report titled “Economic Value of the Indian Alcoholic Beverage Industry” to Vikas Pratap, Principal Secretary & Financial Commissioner, Taxation, Punjab and Varun Roojam, Excise Commissioner, Punjab. 

This first-of-its-kind comprehensive report delves into critical aspects, insights and contributions of the AlcoBev sector to the state of Punjab and the nation, such as economic contribution, consumption pattern, and contribution to allied sectors like agriculture, tourism, etc.

Nita Kapoor, CEO, ISWAI, said, “The AlcoBev sector contributes significantly to the economy both in terms of enabling growth and providing jobs in the state of Punjab. AlcoBev industry is the economic engine of the country and the state, and it is, thus, essential that relevant stakeholders recognise the economic contribution of our sector. A progressive excise policy announced by the Punjab government has led to unlocking the excise revenues for the state.”  

Talking about the illicit liquor manufacturing and its trade, which increases during the festive season, Nita Kapoor stated that, “India is the illicit alcohol capital of the world and counterfeit accounts for 25% of the industry volumes as per industry sources. This is a challenge that the states of UP, Maharashtra and Punjab continue to address with strict enforcement and penalties.”

It is imperative to mention that on the year-to-date (YTD), the alcobev industry in Punjab has witnessed a record revenue growth of over 41% for the year 2022-23. Preference for premium products is at an all-time high at 68% of the total industry.

The report stated that the nationwide alcoholic beverage tax collection for the financial year 2021 was as high as INR 2.4 lakh crore. Punjab, with  a collection of around INR  9000 crore in 2022-23  witnessed an increase of 41% over  2021-22.

It further highlighted that India is the fifth largest contributor to the global alcohol market revenues and was estimated at USD 52.4 billion (INR 3.9 lakh crore, including country liquor) for Calendar Year (CY) 2021, amounting to nearly 2% of India's nominal GDP for FY21.

Suresh Menon, Secretary General, ISWAI, said, “With 20-plus grain and molasses distillation units in the State, Punjab is among the top 12 distilling states in the country and hence an important player for the Alcoholic Spirits and Ethanol Blending sectors. Additionally, the AlcoBev industry not only contributes significantly to taxes, it also supports farmers’ livelihoods and is a large part of the food and beverage, tourism, and packaging industries.”

Menon added, “Proactive government policies will help break the multiple barriers to ease of doing business in the sector and make for a favourable working environment. Some of these barriers, if dismantled, will actually help in the growth of the sector for the benefit of all stakeholders.”