Beer Industry’s contributes Rs 92,324 cr in 2023, 0.3% of India’s GDP

NEW DELHI: The beer industry delivered a remarkable Rs 92,324 crore ($10.6 billion) to India’s GDP in 2023, which represented 0.3 per cent of the national GDP. This is part of the Rs 76.45 lakh crore ($878 billion) poured into the global GDP by the beer industry globally.

The study, conducted by Oxford Economics, is the largest ever undertaken on the economic impact of the brewing industry. It covers 185 countries, of which 76 countries including India are covered in detail. The study is a global overview of the industry’s contribution across the entire journey of the supply chain, from raw materials to the beer in consumers hand, revealing a sector that supports 3.3 crore jobs globally, including over 13 lakh jobs in India.

The significant contributions of the beer industry in India include:

Supporting Local Economy: Beer industry contributed Rs 82,324 crores ($10.6 billion) to India’s GDP, out which brewers’ direct contribution stood at Rs 40,050 crore ($4.6 billion), and over Rs 52,239 crores ($6 billion) was contributed by downstream value chain.

Supporting Public Finances: The beer sector contributed Rs 51,376 crore ($5.9 billion) in tax revenues through excise, sales taxes, other taxes, and the taxes paid by the downstream value chain. This is 1.8 per cent of the Government tax revenues.

Jobs Supported: In India, the beer sector supported 0.3 per cent of national employment. Of the 13 lakh jobs being generated from the beer industry, 5.4 lakh jobs were directly created by brewers, while 7.8 lakh by those involved in downstream value chain like logistics, restaurants, retailers etc.

Commenting on the report, Vinod Giri, Director General, Brewers Association of India, said: “Beer is entirely a local product. It is also high volumes product by nature and thus creates a massive multiplier effect on the local economy. It buys barley from local farmers and packaging material from local suppliers. Being a high volume product, it employs large number of people for handling, takes up large warehousing spaces, and employs large fleets for moving the product. Finally, a very large part of beer is consumed at the on-trade bars and restaurants which results in a massive economic footprint on the local hospitality sector.”

In India, the beer sector is continuing to have a substantial economic impact on the economy that extends far beyond its direct value. In 2023, brewers generated Rs 40,050 crores ($4.6 billion) in direct GDP, but their extensive supply chains and downstream activities magnified this impact to Rs 92,324 crores ($10.6 billion). The downstream value chain alone, which includes distributors, retailers, and hospitality venues, accounted for Rs 52,239 crores ($6 billion) of the sector’s GDP impact.

Agriculture plays a pivotal role too, with the overwhelming majority of agricultural products, manufacturing, and services sourced from the same country where the beer is brewed.

The process from brewing to consumption also garners significant tax revenue on a global scale. The tax contribution of Rs 51,376 crore ($5.9 billion) boosts the nation’s public finances.