Alcohol tax reaches ₹4 lakh crore in 2024-25, 19% of states' own tax revenue, as premiumisation drives growth

Our read

States stay dependent on alcohol revenue, so premiumisation will keep growing and duties will be adjusted rather than cut, with the ₹4 lakh crore base more likely to be built on than reduced.

For operators

Premium is the growth engine, with the segment compounding at a 10.2% CAGR from 2022 to 2025 inside a ₹6.2 lakh crore alcobev market in CY2025, so weight your portfolio and trade spend toward premium and plan state by state, since states like Telangana draw 32% of their own tax revenue from alcohol.

Watch

State budget excise revenue targets that exceed recent growth, especially in Telangana