When you guzzle that frothy glass of beer, you are not just quenching your thirst so common in the tropical Indian weather, you are also adding to the government tax coffer and to the country’s GDP.
A report by Oxford Economics, an independent economic advisory firm, says Beer industry contributed around Rs one lakh crores to India’s GDP in 2023, and over Rs 50,000 crore in tax revenues to the government coffer. The report published in association of Brewers Association of India also says the beer-making industry supported 0.3 per cent of national employment.
According to the report, the beer industry contributed Rs 92,324 crores (USD 10.6 billion) to India’s GDP, out which brewers’ direct contribution stood at Rs 40,050 crore (USD 4.6 billion), and over Rs 52,239 crores (USD 6 billion) was contributed by downstream value chain.
The industry also contributed Rs 51,376 crore ( USD 5.9 billion) in tax revenues through excise, sales taxes, other taxes, and the taxes paid by the downstream value chain.
In terms of jobs, the sector has generated 13 lakh jobs - 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.
Vinod Giri, Director General, Brewers Association of India, said: “Beer is entirely a local product. It is also a high-volume 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 a 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.”
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.