Published 14:57 IST, January 31st 2025
Union Budget Expectations 2025: Alcohol Industry Seeks GST Inclusion, Lower Import Duties & Regulatory Reforms
With Union Budget 2025 set to be unveiled on February 1, the alcohol industry is pushing for key reforms, including tax relief and inclusion in GST.

As Finance Minister Nirmala Sitharaman prepares to present the Union Budget 2025 on February 1, stakeholders from the alcohol industry are voicing their expectations, seeking policy reforms to foster sustainable growth. With alcohol sales contributing 1.2% to India’s nominal GDP and 24.6% to states' own tax revenues, industry leaders argue that easing regulatory hurdles and providing financial incentives will help unlock its full potential.
Industry Calls for PLI Scheme & Tax Incentives
Despite being deeply integrated with India’s agricultural sector, the beer industry continues to struggle with government support. Advocating for its inclusion in the Production-Linked Incentive (PLI) scheme under the food processing sector, Abhinav Jindal, CEO of Kimaya Himalayan Beverages (BeeYoung Beer & Brewgarden), emphasized the need for financial relief and lower import duties on key ingredients.
“The beer industry in India has been at the forefront of promoting agricultural growth through various initiatives, significantly benefiting farmers by boosting the cultivation of barley, rice, and other adjuncts. However, despite being a 100% agricultural industry, our industry continues to struggle for support from the government. It is essential that the beer industry is included in the Government of India's PLI scheme for the food processing sector.”
Jindal further suggested the introduction of input tax credits for SGST on raw materials and packaging to ease the financial burden on breweries.
Standardization & GST Inclusion
Regulatory complexities continue to hinder the growth of alcohol brands, with industry players demanding streamlined processes and better interstate business facilitation. Shantanu Upadhyay, Co-founder & CEO of Kati Patang, pointed out that the lack of uniform registration and taxation laws makes it difficult for emerging brands to expand.
“We need at least the low-alcohol segment to be included under GST. Currently, when a brand is registered in one state, it has to go through a cumbersome process of re-registration every year across different states. This regulatory burden is unnecessary and makes operations difficult, especially for smaller brands.”
He further highlighted the need for logistics and tourism infrastructure to support craft alcohol brands, stating that the government should invest in policies that help businesses create experiential destinations.
“Alcohol-linked tourism is a major revenue driver globally. If we create destinations in places like Himachal and Uttarakhand with the right infrastructure and government support, it could open new economic opportunities.”
Excise Duty Reforms & Licensing Simplification
Another critical demand from the alcohol sector is the rationalization of excise duties and a simplified licensing process. Avneet Singh, Founder and CEO of Medusa Beverages, acknowledged the government’s efforts in promoting responsible drinking but urged for balanced policies that support business growth.
“Alcohol sales contribute a significant portion to the economy, with tax revenues set to rise further as the industry expands. Adjusting excise duties and streamlining the licensing framework would allow businesses to operate more efficiently and reach a wider market.”
Singh emphasized that a collaborative approach between the government and industry stakeholders could drive economic growth while maintaining social responsibility.
The Road Ahead: Will Budget 2025 Address Industry Concerns?
As the countdown to Union Budget 2025 begins, the alcohol industry remains hopeful that its long-standing concerns will be addressed. With the sector playing a vital role in revenue generation, agricultural growth, and tourism, policy changes in taxation, infrastructure, and licensing could unlock new economic opportunities.
Updated 14:57 IST, January 31st 2025