*ISWAI presents the AlcoBev Industry’s first Report, on ‘Economic Value of the Indian Alcoholic Beverage Industry, Edition 2023’, to Amitabh Kant G20 Sherpa
*The AlcoBev sector accounts for 2% of the country's nominal GDP, generates employment to over 80 lakh in allied sectors of agriculture, F&B, Retail, and Hospitality
*AlcoBev industry is the economic engine of states! Contributes to 25% and more to states’ GSDP; AlcoBev sector seeks a level playing field
TTT NEWS NETWORK
NEW DELHI, 1 NOVEMBER 2023:
The International Spirits & Wines Association of India (ISWAI), the apex body of the premium AlcoBev sector, unveiled its report titled “Economic Value of the Indian Alcoholic Beverage Industry”, presenting it to Shri Amitabh Kant, G20 Sherpa and former CEO, NITI Aayog. This comprehensive report is a first-of-its-kind and takes an in-depth look at the vital elements and the significant roles played by the Indian AlcoBev sector.
The report offers valuable perspectives on the alcoholic beverage industry, highlighting its economic impact, patterns of consumption, and its positive effects on related industries like agriculture, tourism, and more.
(Above) Shri Amitabh Kant, G20 Sherpa and former CEO, NITI Aayog, being presented a copy of the Report titled ‘Economic Value of the Indian Alcoholic Beverage Industry’ by Nita Kapoor, CEO, and Suresh Menon, Secretary-General of the International Spirits and Wines Association of India (ISWAI) at his office in New Delhi.
Expressing her gratitude, Nita Kapoor, CEO, ISWAI, said, “I extend our heartfelt thanks to Shri Amitabh Kant, G20 Sherpa, on behalf of ISWAI for allocating the time to receive this crucial report. 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.”
Nita Kapoor further emphasised, “The alcohol industry holds a vital position within the national economy, presenting opportunities for growth, job creation, and revenue generation. As we look to the future, the importance of the alcohol industry in India is poised to expand. Therefore, it is crucial to simplify its operational complexities, enhance its Ease of Doing Business (EODB), and unlock its full potential for growth.”
Key Highlights:
- With an estimated market size of $52.4 billion in 2021, roughly 2% of the country’s nominal GDP, the Indian AlcoBev industry is significant and burgeoning (INR 3.9 lakh crore, including country liquor).
- Projections suggest the Indian alcoholic beverage industry could reach an astounding $64 billion over the next five years, ensuring India's position as the fifth-largest contributor to global market revenues in the near to medium term.
- In the fiscal year 2021, the industry contributed a significant INR 2.4 lakh crore in indirect taxes to the state governments, representing many income streams. Customs duty on alcoholic beverages alone accounted for INR 2,400 crore.
- The alcohol revenues represent 1.2 per cent of India's nominal GDP, 7.7 per cent of the total tax collection, and 11.7 per cent of the nation's indirect tax revenue.
- The sector contributes a significant 24.6 per cent of the overall own tax revenues of the states.
- Around 1,235 million litres of extra neutral alcohol (ENA) were used to produce Indian-made foreign liquor (IMFL) and ready-to-drink alcoholic beverages in 2021. It is estimated that to produce 741 million litres of extra neutral alcohol for IMFL, 1.9 million tonnes of grain are required. This amounts to 0.6 per cent of India’s total grain production of 316 million tonnes in 2021-2022.
- Approximately 724,611 farms and 36,23,057 farmers are involved in grain production for ENA. 2.9% of the persons employed in the 'agriculture, hunting, forestry, and fishery sectors are engaged in the production of grain/sugarcane/grapes utilised for ENA for spirits and wine.
- The scope of the alcohol industry in terms of employment is remarkable at a staggering 79 lakh individuals, both directly and indirectly. This accounts for 1.5 per cent of the total manpower employed in the country.
- About 14-19% of the overall revenues of the organized F&B industry are dependent on the INR 28,000 crore sales of alcoholic beverages.
- An enabling policy environment for the alcoholic beverage industry can thus drive investments, jobs, and exports.
- India-manufactured alcoholic beverages have large untapped export potential and should be treated like any other industry.
On the occasion, Suresh Menon, Secretary-General, ISWAI, remarked, “Beyond its substantial tax contributions, the industry plays a vital role in supporting farmers’ livelihoods. It is also intricately linked to the food and beverage, hospitality, tourism, and packaging sectors. With India’s demographic shift, the growth of the young and expanding middle class is projected to persist for several more decades, driving an increase in per capita consumption of various goods and services. Constructive governmental policies can streamline the ease of business in this sector, fostering a more conducive operational climate. By addressing and removing certain barriers, we can propel the sector's growth to the advantage of all involved parties.”
About International Spirits and Wines Association of India (ISWAI):
The International Spirits and Wines Association of India (ISWAI), is recognized as an authoritative voice of the Indian Premium Alcoholic Beverage Industry, with a keen insight into government policy, is instrumental in shaping industry perspectives, driving best practices, and promoting responsible use of alcoholic beverages.
Our members include global leaders in the spirits and wine industries like Bacardi, Beam Suntory, Brown Forman, Campari Group, Diageo-United Spirits, Moët Hennessy, Pernod Ricard, and William Grant & Sons. Our members are strong proponents of the ‘Make in India’ ideology, having made substantial investments over the years in different states of the country to embrace indigenisation, and locally manufacture a wide range of Indian Made Foreign Liquor (IMFL) and Bottled in India (BII) products. ISWAI members account for a substantial portion of the tax revenue generated from branded alcoholic spirits and wines across the country, apart from generating employment and business opportunities both directly, and in ancillary industries and services across states.
ISWAI is proud to be an active advocate of Responsible Consumption, and promotes the principle of ‘if you choose to drink, drink less, drink better’.
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