Published: September 6, 2024 4:37 pm
Author: RT
New Delhi sees “huge unrealized export potential” in offering locally made beer, whiskey, and rum to the world
New Delhi has set a target of exporting alcohol worth $1 billion over the next few years. The move to increase exports of Indian spirits to foreign destinations is part of India’s strategy to boost overall exports and promote its ‘Make in India’ campaign, PTI news agency reported, citing APEDA (the Agricultural & Processed Food Products Export Development Authority), a government body under the Commerce Ministry.
At present, India ranks 40th for alcoholic beverage exports, according to APEDA, but officials say the country has “huge unrealized export potential.” Last year, India exported 262,778.43 million tons of alcoholic products worth $375.09 million during the 2023-24 financial year, according to government data. The major export destinations include UAE, Singapore, Tanzania, Angola, and Ghana.
India has “huge potential” to increase exports to the US, Europe, and Africa, according to Vinod Giri, director general of the Brewers Association of India, who spoke to PTI. To boost exports, he suggested, the federal government should urge states to include export promotion in their excise policies.
“While the single malt will play a greater role in making India’s reputation as a high-quality whiskey producer, the volumes will come from beverages which are more palatable taste-wise and price-wise, such as premium Indian whiskeys and premium rum,” Giri said.
CNBC-TV18 earlier reported that Indian products are facing issues of definition and nomenclature in the top export markets. New Delhi is working to resolve such issues as part of negotiations for Free Trade Agreements (FTAs). For instance, India has been trying to get its local whiskeys certified as Scotch whiskey as part of its FTA negotiations with the UK.
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Meanwhile, India imported alcoholic beverages worth over $1 billion during the past fiscal year, an increase of around 20% compared to the previous period, according to the Statista data platform. The UK and the US are the South Asian nation’s top sources of imported liquor.
India’s alcohol industry accounts for 2% of the nominal GDP and generates employment for over 8 million people. The sector is expected to be worth $64 billion over the next five years on the back of rising incomes and urbanization, the International Spirits and Wines Association of India (ISWAI) stated last year. The industry body also said India was expected to be the fifth-largest contributor to global market revenues in the near-medium term.
