Beer industry contributes significantly to India’s GDP, creating jobs and tax revenues, supporting local economies and communities

The beer industry contributed ₹92,324 crore or $10.6 billion to India’s GDP in 2023, representing 0.3 per cent of the national GDP. This is part of the ₹76.45 lakh crore or $878 billion poured into the global GDP by the beer industry.

Oxford Economics observed this contribution as part of its study on Beer’s Global Economic Footprint commissioned by the World Brewing Alliance. It covers 185 countries, of which 76 countries including India are covered in detail.

The study is a global overview of the industry’s contribution across the entire journey of the supply chain, from raw materials to the beer in consumers’ hands, revealing the sector supports 3.3 crore jobs globally, including over 13 lakh jobs in India.

According to the study, of the ₹82,324 crore contribution to India’s GDP, brewers’ direct contribution stood at ₹40,050 crore or $4.6 billion, and over ₹52,239 crore or $6 billion was contributed by the downstream value chain.

Contribution to India’s GDP

The beer sector contributed ₹51,376 crore or $5.9 billion in tax revenues through excise, sales taxes, and the taxes paid by the downstream value chain among others, making it 1.8 per cent of the government tax revenues.

In India, the beer sector supported 0.3 per cent of national employment. Of the 13 lakh jobs generated from the beer industry, 5.4 lakh jobs were directly created by brewers, while 7.8 lakh were by those involved in downstream value chains like logistics, restaurants, and retailers.

Commenting on the report, Vinod Giri, Director General of, the Brewers Association of India (BAI), said: “Beer is entirely a local product. It is also a high volumes 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 many people for handling, takes up large warehousing spaces, and employs large fleets for moving the product. Finally, a 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.”

Agriculture plays a pivotal role too, with a majority of agricultural products, manufacturing, and services sourced from the same country where the beer is brewed.

Justin Kissinger, World Brewing Alliance President and CEO, said, “The beer industry has a huge, positive impact on the economy in India, supporting a robust value chain that includes farmers, bottlers, shippers, and the hospitality sector. What makes beer unique is that it is deeply rooted within its local markets, as we see with these compelling figures for India benefiting local economies and communities. This report shows that beer is not just one of the most enjoyed drinks in India and globally, but one of the most valuable industries too.”