ISWAI’s Economic Report Estimates India’s Alcobev Market at ₹6.2 Lakh Crore

New Delhi: The Economic Value of the Indian Alcoholic Beverage Industry 2026, released by the International Spirits & Wines Association of India (ISWAI), highlights the significant contribution of India’s alcoholic beverages industry to economic activity, public finance and employment generation.

The industry is estimated to have a market size of ₹6.2 lakh crore in CY2025, equivalent to approximately 1.8% of India’s nominal GDP. The industry's fiscal contribution is particularly significant. It generated an estimated ₹4 lakh crore in tax revenues during FY2024-25, including central and state taxes. This represented approximately 6.6% of India’s total tax collections and 11.3% of indirect tax collections. The sector’s total tax contribution was equivalent to approximately 1.3% of India’s nominal GDP for FY2024-25.

Mr. Sanjit Padhi, CEO, International Spirits and Wines Association of India (ISWAI), said, “India’s Alcobev is an industry of scale, and increasingly, it is an industry of value. The next opportunity is to drive premiumisation, strengthen value chains and build globally competitive Indian businesses.”Alcohol-related revenues account for approximately 19% of the states’ own tax revenues across the 28 states and three Union Territories assessed in the report, with several large states deriving more than 20% of their own tax revenues from the sector. 

Mr. Arvind Mehta, Former Secretary, Finance Commission, said, “The numbers tell a compelling story- ₹6.2 lakh crore in economic value, ₹4 lakh crore in taxes, and millions of livelihoods supported. The alcoholic beverages industry is an important contributor to India’s economic story.”The industry's economic impact begins well before a bottle reaches the consumer.

Alcoholic beverages production generates sustained demand for agricultural commodities, including grains, sugarcane, molasses, barley and grapes, creating market opportunities for farmers and strengthening agri-processing value chains.The report estimates that approximately 24.2 lakh to 25.5 lakh farms across India are engaged in producing agricultural inputs used in the domestic manufacture of alcoholic beverages in CY2025. Restaurants, hotels, pubs, bars and lounges benefit not only from beverage sales but also from the customer footfall and associated spending generated through food, entertainment and hospitality.