Lakshadweep ends 47-year prohibition, opens licensed liquor regime to court tourists

Centre repeals 1979 dry law, allowing alcohol manufacture, sale and consumption across Lakshadweep under steep excise: 400% on IMFL, 200% beer, 80% wine. Sales capped at 21+. Move targets tourism uplift after 68,328 visitors in 2024 and 47% growth, opening runway for hotels and resort operators.

— Source publishedTue, 9 Jun, 2026, 15:20 IST·First seen Tue, 9 Jun, 2026, 15:44 IST·Source Business Today · Latest

What happened

Lakshadweep Administration · Centre repeals Lakshadweep's 1979 prohibition law, replacing it with a licensed excise regime allowing alcohol manufacture, sale

Key facts

  • 400% excise on IMFL
  • 200% on beer
  • 80% on wine
  • 68,328 tourists in 2024
  • 47% growth
  • age limit 21

Why this matters

Scout resort, F&B, and excise-licensed retail acquisition targets in Lakshadweep early before incumbents lock up scarce island sites and the bid-ask spread widens on the new licensed regime.