India’s alcoholic beverage exports are likely to exceed $1 billion in the next year due to rising demand worldwide

According to a senior government official, the country's alcoholic beverage exports are likely to exceed $1 billion in the next few years due to rising demand for spirits in worldwide markets.

In comparison to $325 million in 2022–23, outbound shipments from the sector reached $230 million from April to October this fiscal year, according to Rajesh Agrawal, Additional Secretary in the Commerce Ministry. These products have a global trade value of around $130 billion.

Indian spirits are becoming increasingly popular. It is likely to exceed $1 billion in the next few years. The Indian beverage sector is expanding rapidly, and demand for these brands around the world is gradually increasing, according to Agrawal, who said that a wine and spirits section will be included in the upcoming three-day Indus Food Expo in Greater Noida (Uttar Pradesh).

In addition to over 120 foreign exhibitors, the show will feature over 2,500 global buyers, 5,000 domestic buyers, and 86 retail chains. Scotch controls the global trade in the segment ($13 billion).

The Indian sector argues that due to the country's mild environment, the product matures in one year and produces the same results. "We're still debating whether to brand it as Indian whiskey or look for a scotch (brand)."Many countries' international law bans that one-year rule). He said that it remains an unresolved matter.

According to the Confederation of Indian Alcoholic Beverage Companies (CIABC), it has been repeatedly noted, along with scientific verification, that such long maturation is not suitable in a warm Indian climate.

Since spirit evaporates 10-15% per year in the Indian environment (as opposed to 1-2% in Europe), we think that prolonged maturation effectively creates a non-tariff barrier, driving up the cost of Indian products by 30–40%, according to CIABC Director General Vinod Giri.

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He added that, compared to 2-3% in Europe, the cost of capital deployed during maturation in India is substantial (8–10% annually).

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