Indian spirit makers have raised red flags over what they describe as “discriminatory excise policies” in several states, alleging that regulations favour imported alcoholic beverages over domestic brands, even those with global recognition.
Industry representatives argue that higher taxes, restrictive distribution policies, and preferential treatment in pricing structures have created an uneven playing field. While imported brands often enjoy reduced duties or promotional leeway, Indian spirits are reportedly saddled with steeper levies and operational hurdles.
“This is not about protectionism, but about fairness,” said an industry executive. “Many Indian brands are globally awarded, yet excise policies in some states tilt the scale in favour of imports. That hurts domestic producers, supply chains, and even farmer incomes linked to raw materials like grains and sugarcane.”
The issue has wider implications for India’s fast-expanding alco-bev sector, which is projected to touch $64 billion by 2030, driven by rising incomes and changing consumer preferences. Domestic spirit makers argue that the bias not only curbs their competitiveness at home but also undermines India’s positioning as an exporter of premium liquor.
Industry bodies have urged state governments to review and rationalise excise structures, stressing parity between Indian and foreign brands. “States stand to gain more revenue if policies are designed to encourage local manufacturing while maintaining consumer choice,” another industry leader added.
The Centre has so far left liquor taxation under the jurisdiction of states, but producers say a more uniform and equitable excise framework could unlock investment, boost employment, and help Indian brands achieve their full potential in both domestic and global markets.
source: PTI
