Alcoholic beverages sector generates Rs 56,000 Cr revenue, creates 5.3 lakh jobs in UP

Lucknow: In line with Chief Minister Yogi Adityanath’s vision of transforming Uttar Pradesh into a $1 trillion economy, all sectors are playing their part, and the alcoholic beverages (Alcobev) sector is proving to be a significant contributor. According to the first-ever comprehensive economic report on UP's alcoholic beverages industry released by the International Spirits and Wines Association of India (ISWAI), the sector generated Rs 56,000 crore in market revenue during FY 2023–24, accounting for 2.4% of the state's GDP.

Deeply integrated with agriculture, construction, packaging, hospitality, logistics, and retail, the industry also sustains 5.3 lakh livelihoods across the state. 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, Minister of State for Excise Nitin Agarwal emphasized 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 Chief Minister’s economic objectives through job creation, rural development, and enhanced tourism potential.

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 Uttar Pradesh 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

▪️Alcoholic beverages account for 25 per cent of tax collections in UP.

▪️Licensed F&B establishments serving alcohol generate 14-19 per cent of their revenues from alcohol sales and employ over 50,000 people.

▪️The state’s 27,308 liquor retail outlets provide employment to 1.3 lakh people.

▪️Procurement of grains and sugarcane for beverage production directly benefits over 3.4 lakh farmers.

▪️The industry contributes immensely to Firozabad’s glass economy, with 80 per cent 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.

▪️The Indian Made Foreign Liquor (IMFL) segment has recorded a 10 per cent annual growth in volumes, reflecting growing consumer trends towards premiumisation.