In the economic value of the Indian alcoholic beverage industry Maharashtra has been ranked the fifth state after Tamil Nadu, UP, Telangana and K’taka with Nashik emerging as the ‘Wine Capital of India’.
Nashik received more than 3.5 lakh visitors every year as wine tourism here has benefitted nearby villages creating new opportunities to improve state GDP by nearly 20 per cent, said the report by the International Spirits & Wines Association of India (ISWAI), the apex body of the premium AlcoBev sector.
Maharashtra has the largest installed capacity in the country for the production of Alcoholic spirits from molasses and grain. An astounding 1.8 lakh foreign tourists visit the state, with domestic tourists exceeding 4.3 crore, report added. Maharashtra has the added advantage of having around 90 per cent of liquor manufacturers in the country establishing their manufacturing units within the state itself.
The International Spirits & Wines Association of India (ISWAI), the apex body of the premium AlcoBev sector, on Tuesday presented its report titled “Economic Value of the Indian Alcoholic Beverage Industry” to DCM Ajit Pawar, Agriculture minister Dhananjay Munde, Excise Commissioner Vijay Suryawanshi and joint commissioner Yatin Sawant. The comprehensive report is a first-of-its-kind that delves into critical aspects and contributions of the AlcoBev sector to the State of Maharashtra and the nation overall.
The report provides important insights into the alcoholic beverage industry in terms of its economic contribution, consumption trends, and contribution to allied sectors such as agriculture, tourism, etc. Presenting the report, Nita Kapoor, CEO, ISWAI, said, “The Alcobev Industry is the economic engine of the country and the state, and it is, thus, essential that relevant stakeholders should recognise the economic contribution of our sector.””The number of retail outlets in Maharashtra is 10,849. The scope of the alcohol industry in terms of employment is remarkable. Currently, India’s alcoholic beverage retail shop density per lakh of drinking population is five. The total number of retail shops is estimated at around 88,234, including IMFL, country liquor and beer. E-commerce is an opportunity for all spirits that the state could consider with stringent KYC norms that can be implemented with a technology partner,” the report stated.
The overall nationwide alcoholic beverage tax collection for the financial year 2021 was as high as INR 2.4 lakh crore, the report pointed out. Interesting to note that the wine production in India is concentrated in the state of Maharashtra (90 per cent). The strong link between the alcoholic beverage and tourism industries is creating new growth opportunities, the report stated further. In Nashik the wine tourism has benefited nearby villages such as Gangapur, Gangaware, Girnare and Savergoan by creating new opportunities from tourism like hotel properties, the food industry, local farmers and retail merchants, it added.
Suresh Menon, Secretary-General, ISWAI, said, “Maharashtra has the advantage of being the gateway of India for business travel and tourism. An astounding 1.8 lakh foreign tourists visit the state, with domestic tourists exceeding 4.3 crore. Studies indicate that alcohol tourism has the potential to increase local GDPs by as much as 20 per cent”.
India is the fifth largest contributor to global market revenues and is expected to retain its position in the near to medium term. The Indian alcoholic beverage industry’s market size was estimated at USD 52.4 billion (INR 3.9 lakh crore) for CY2021, which is approximately 2 per cent of India’s nominal GDP for FY21 and more than 1.6 per cent of nominal GDP for FY22. Some sources estimate the Indian alcoholic beverage industry’s potential size at USD 64 billion in the next five years.