India’s alcoholic beverages sector is rapidly making its mark on the global spirits landscape, with homegrown brands gaining international recognition. Currently valued at $52.4 billion, the industry contributes nearly 2% to the country’s GDP (FY21), playing a pivotal role in India’s economic growth.
Beyond its direct economic impact, the sector also stimulates growth in related industries such as tourism, agriculture, retail, and food processing, creating millions of direct and indirect jobs. With a domestic volume of 390 million cases of branded spirits and ₹3.4 lakh crores in excise revenue for FY 2023-24, the Indian alcohol industry is poised for further expansion.
key highlights:
- $52.4 Billion Industry: India’s alcobev sector in 2023.
- 2% of GDP: Key economic contributor.
- Global Expansion: Indian spirits gaining recognition.
- 390 Million Cases: Domestic volume for FY 2023-24.
- ₹3.4 Lakh Crore Revenue: Excise tax contribution.
- 7.9 Million Jobs: Employment in the sector.
- Premiumisation: Double-digit growth in premium spirits.
- Make in India: Success of single malts globally.
Global Recognition at World Food India 2024
At the World Food India 2024 event in New Delhi, the session “Indian Spirits Brands Going Global: Promotion and Innovation” highlighted the growing international appeal of Indian spirits. Industry leaders discussed how Indian-made spirits, especially single malts, are setting new global standards. Sanjit Padhi, CEO of the International Spirits and Wines Association of India (ISWAI), emphasized the country’s success in producing premium-quality spirits.
Premiumisation and Rising Global Influence
From 2019 to 2023, India’s spirits industry grew at a CAGR of 2.6%, with the premium segment experiencing double-digit growth due to rising disposable incomes and a shift towards premium products. The share of premium spirits rose from 42% to 49%, underscoring the country’s increasing focus on value creation.
Padhi noted the sector’s employment of over 7.9 million individuals and the impressive 16% rise in exports, highlighting India’s favourable shift in product positioning. He stated, “We could soon become a trade surplus in the industry as exports continue to grow at 22%.”
The Future of Indian Spirits
The Indian single malt segment is flourishing under the “Make in India” initiative, with domestic sales of 350,000 cases now on par with imports. Industry leaders, including Padhi, are optimistic about further growth, stressing the importance of innovation, quality, and research and development (R&D) to boost exports.
UK-India Partnership for Growth
At the event, Richard McCallum, Group CEO of the UK India Business Council, emphasized the importance of India as a strategic partner for the UK, aligning with key initiatives like ‘Make in India’ and ‘Aatmanirbhar Bharat.’ This partnership, he believes, is crucial for the economic growth of both nations.
Promoting Indian Spirits Globally
Sridhar Pongur, COO of John Distilleries, pointed out that while the “Make in India” initiative has been successful, more efforts are needed to promote Indian spirits globally. He called for collaborative efforts and support from Indian embassies to promote Indian whisky, particularly single malts, as a global category.
A Promising Future
India is now the fifth-largest alcoholic beverage market globally and is transitioning from a price-sensitive focus to premiumization. With ongoing innovation and government support, India’s alcohol industry is set to strengthen its influence on the world stage.