Beer industry contributed Rs 1 lakh crore to India’s GDP

A frothy glass of beer is doing much more than making the consumer happy. It is providing revenue to the government tax coffer and also contributing to the country’s GDP.

According to a report by the Oxford Economics, the beer industry alone contributed around Rs 1 lakh crores to India’s GDP in 2023. It added Rs 92,324 crore ($10.6 billion) to the GDP and Rs 50,000 crore in tax revenue to the government treasury.

The report, published in association with Brewers Association of India, also says the beer-manufacturing industry supported 0.3 per cent of national employment.

Out of the total Rs 92,324 crore, the brewers directly contributed Rs 40,050 crore ($ 4.6 billion), and over Rs 52,239 crore ($6 billion) was added by the downstream value chain. This contribution by the beer industry is 0.3% of the national GDP and is part of the global total of Rs 76.45 lakh crore ($878 billion).

The beer industry also 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, which accounts to 1.8% of the government’s total tax income.

The beer industry also helped in generating employment. It provided jobs to 13 lakh people, 5.4 lakh jobs were directly created by brewers and 7.8 lakh by those involved in downstream value chain like logistics, restaurants, and retail.

Speaking about the report, 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. A very large part of beer is consumed at the on-trade bars and restaurants which results in a significant economic footprint on the local hospitality sector.”

The study taken up by Oxford Economics is the largest ever undertaken on the economic impact of the brewing industry. The study was conducted covering 185 countries, of which 76 countries including India, are covered in detail.

The report also stresses on the important role of agriculture in the beer production industry. The beer industry has a positive impact on India’s economy.