The alcoholic beverages (Alcobev) sector in Uttar Pradesh generated about Rs 56,000 crore in market revenue during the last financial year 2023–24.
This corresponds to roughly 2.4% of UP’s Gross State Domestic Product (GSDP), according to the first-ever comprehensive economic report on the state’s alcobev industry released by the International Spirits and Wines Association of India (ISWAI).
USWAI noted that in line with Chief Minister Yogi Adityanath’s vision of transforming UP into a $1 trillion economy, all sectors are playing their part, and the alcobev sector is proving to be a significant contributor.
Deeply integrated with agriculture, construction, packaging, hospitality, logistics and retail, the alcobev domain sustains about 530,000 livelihoods across UP.
Titled ‘Building Pathways for Future Investments and Growth: Alcoholic Beverages Industry in Uttar Pradesh’, the report highlights the sector’s multifaceted role in driving economic growth, creating jobs, supporting tourism, and accelerating rural development.
Speaking at the report launch, UP Minister of State for Excise Nitin Agarwal emphasised the state government’s commitment to building a transparent and forward-looking excise system that fuels development and ensures public welfare.
The ISWAI UP Economic Report 2025 highlights how the sector contributes to the CM’s economic objectives through job creation, rural development, and enhanced tourism potential.
UP Excise Commissioner Dr Adarsh Singh noted that major reforms in recent years, such as dismantling traditional monopolies, promoting digital governance, and fostering a competitive investment climate, have positioned UP as a model for progressive excise policy.
ISWAI CEO Sanjeet Padhi added that as UP evolves into an economic powerhouse, the alcobev industry is poised to be a vital partner in the state’s trillion-dollar journey.
The report, developed with inputs from industry experts, alcoholic beverage companies, and global bodies like the International Wine & Spirits Research (IWSR), also recommends forward-looking policy measures, including rationalised taxation for premium products, wider retail access, enhanced export support, and further digitisation of regulations to improve ease of doing business.
Key points of the report: –
▪️Alcobev account for 25% of tax collections in UP
▪️Licensed F&B establishments serving alcohol generate 14-19% of their revenues from alcohol sales and employ over 50,000 people
▪️The state’s 27,308 liquor retail outlets provide employment to 130,000 people
▪️Procurement of grains and sugarcane for beverage production directly benefits over 340,000 farmers
▪️The industry contributes to Firozabad’s glass economy, with 80% of the city’s container glass output consumed in the beverage sector
▪️UP’s Excise Policy 2025-26 promotes alcohol-tourism by setting up wineries and microbreweries in partnership with the tourism department
▪️Indian Made Foreign Liquor (IMFL) segment has recorded a 10% annual growth in volumes, reflecting growing consumer trends towards ‘premiumisation’