UP Excise Summit drew ₹4,320 cr boosting alcohol sector

The state Excise Department held its first-ever Investors’ Summit focused exclusively on the alcohol industry towards transforming Uttar Pradesh into a manufacturing powerhouse. The one-day event received investment proposals worth Rs 4,320 crore, showing Uttar Pradesh’s move from a service-based economy towards becoming a manufacturing hub. According to the officials, the summit was strategically designed to encourage investments in alcohol production, distribution, and marketing. The aim was to provide investors with a clear understanding of the policy frameworks and promote industrial growth by simplifying licensing procedures and regulatory processes through the use of e-governance, single-window clearance systems, and attractive incentive schemes.

Highlighting the evolving industrial landscape of Uttar Pradesh, State Excise Minister Nitin Agarwal stated that while the state has traditionally been recognised for its service sector, it is now swiftly transforming into a manufacturing hub. He emphasised that alcohol-based industries are playing a significant role in driving this shift.

Over the past few years, the Invest UP portal has witnessed a surge in investment interest within the alcohol sector, receiving a total of 142 proposals. This progress has led to the signing of 135 MoUs worth Rs 39,479 crore, which could create over 73,500 jobs. Out of these, 46 projects have already secured land and will soon begin construction, involving an investment of Rs 7,888 crore. Also, 19 units are already operational, having invested Rs 2,339 crore and provided jobs to 2,316 people. Reinforcing this growth, the recent investors’ summit attracted nearly Rs 3,600 crore in fresh proposals for new ventures such as breweries, wineries, distilleries, and associated infrastructure.

The alcohol industry plays a significant role in strengthening Uttar Pradesh’s economy. According to a detailed report by the International Spirits and Wines Association of India, the sector generated a remarkable Rs 56,000 crore in market revenue during the financial year 2023-24. This alone contributed 2.4 per cent to the state’s Gross Domestic Product (GDP), highlighting its vital place in the economic framework of the state.

One of the most striking facts is that alcohol taxes account for nearly 25 per cent of UP’s total tax collection. This makes it a major source of state revenue. Within this sector, the Indian Made Foreign Liquor (IMFL) segment is witnessing steady growth at an annual rate of 10 per cent, which indicates a rising consumer preference for premium alcohol brands.

The industry’s impact is not limited to city bars or retail stores; it extends deep into the rural economy as well. More than 3.4 lakh farmers are directly engaged in supplying grain and sugarcane to the alcohol manufacturing units, so that a stable demand for agricultural produce is ensured. Across Uttar Pradesh, there are approximately 27,308 licensed liquor outlets, which together support around 1.3 lakh livelihoods.

Additionally, restaurants and food & beverage businesses earn about 19% of their revenue from alcohol sales, employing nearly 50,000 people in the process. A lesser-known but notable fact is that 80% of all container glass produced in UP cities is consumed by the beverage industry.

Policy Environment and Future Outlook

During the summit, officials highlighted several key updates to the new Excise Policy, which aim to promote a business-friendly environment. One major step forward is the use of technology-based solutions for licensing, making the process quicker, more transparent, and easier to use for all. The state has also simplified approval procedures, which help investors and entrepreneurs commence their operations smoothly, without any delays or complicated formalities.

To further boost the sector in UP, the policy includes attractive incentives for establishing new manufacturing units. These benefits are expected to encourage more companies to invest in Uttar Pradesh, especially in areas such as alcohol production, distillation, and bottling.

The summit provided a valuable platform for discussions between government officials and industry leaders, highlighting the state government’s commitment to ease of doing business and clear, investor-friendly policies.

With these progressive steps, Uttar Pradesh is aiming to become a leading centre for alcohol-based manufacturing in India. This move is further expected to boost related sectors like packaging, logistics, and raw material supply. Most importantly, it will create new job opportunities in rural areas, which will support both economic growth and social development.