Indian alcoholic beverage industry contributes Rs 6.2 lakh crore to economy: ISWAI report
New Delhi, Oct 7 (TNT): The Indian alcoholic beverage industry contributed an estimated Rs 6.2 lakh crore to the country’s economy in 2025, equivalent to around 1.8 per cent of nominal GDP, according to a report by the International Spirits & Wines Association of India (ISWAI).
The report, titled Economic Value of Indian Alcoholic Beverage Industry 2026, said the sector generated about Rs 4 lakh crore in tax revenues during FY2024-25, accounting for nearly 6.6 per cent of total tax collections and 11.3 per cent of indirect tax revenues.
Alcohol-related revenues contributed around 19 per cent of states’ own tax revenues across the 28 states and three Union Territories assessed in the study.
The report estimated that the industry supported livelihoods linked to 24.2-25.5 lakh farms and 121.4-128.1 lakh farmers in 2025.
Alcohol-linked food and beverage outlets accounted for 9.2-11 lakh jobs, while organised off-premise retail supported around 4.8 lakh jobs.
Overall, the report estimated that agriculture, food and beverage and retail activities linked to the sector supported around 144 lakh jobs.
The report also highlighted premiumisation, noting that the premium segment grew at a compound annual growth rate of 10.2 per cent between 2022 and 2025, compared with 1.1 per cent for the economy segment and 1.4 per cent for the regular segment.
The industry also accounted for nearly 70 per cent of container glass demand, supporting a domestic container glass market estimated at Rs 10,000 crore, while transport and logistics activities associated with the sector generated around Rs 5,800 crore in annual economic activity.
ISWAI CEO Sanjit Padhi said the scale of the industry and its wider value chains demonstrated its economic significance, while premiumisation was creating opportunities for globally competitive businesses.
The report also called for greater regulatory consistency, rationalised taxation and pricing, digital compliance and modernisation of distribution systems to support the sector’s growth.
Former Finance Commission Secretary Arvind Mehta also contributed to the report.
TNT KM
