Beer Sector's Economic Impact and Job Creation
India's beer industry contributes approximately Rs 92,000 crore to the country's Gross Domestic Product (GDP) and supports employment for about 13 lakh people, according to an independent study by Oxford Economics cited by the Brewers Association of India. The sector also generates nearly Rs 51,000 crore in tax revenues for state governments.
Fresh Investments and MoUs Worth Rs 2,500 Crore
The industry is poised for further expansion, with memorandums of understanding (MoUs) worth nearly Rs 2,500 crore signed over the past six months for new brewery projects, as stated by Vinod Giri, Director General of the Brewers Association of India. Giri told ANI, 'In the last six months or so, we saw MoUs being signed for nearly two and a half thousand crores.'
Linkages with Agriculture and Local Sourcing
The beer industry maintains strong linkages with Indian agriculture through the procurement of key raw materials such as barley and rice. This supports manufacturing, logistics, retail, hospitality, and tourism sectors. United Breweries Limited (UBL) Managing Director and CEO Vivek Gupta told ANI that an independent socio-economic impact study found the company's value chain contributes nearly Rs 43,000 crore to the Indian economy while supporting around 2.95 lakh jobs and livelihoods across agriculture, manufacturing, logistics, retail, hospitality, and tourism.
UBL's Contribution and Tax Payments
Gupta added that UBL contributes close to Rs 44,000 crore to the economy and pays around Rs 31,000 crore in taxes. The company procures nearly Rs 700 crore worth of rice and barley from Indian farmers annually, undertakes around Rs 7,000 crore in local procurement, and works with nearly 10,000 vendors, including many micro, small and medium enterprises (MSMEs).
Domestic Supply Chain Strength
According to a socio-economic impact study released by UBL and independently conducted by Steward Redqueen, UBL sources about 93 per cent of its inputs locally, strengthening domestic supply chains across agriculture, packaging, logistics, retail, and hospitality while generating additional economic activity. The study said the company's overall economic contribution is equivalent to nearly 0.1 per cent of India's GDP through its operations and supply chain.
Sustainable Practices and Community Initiatives
The report highlighted the sector's role in supporting agriculture through local sourcing and investments in sustainable farming practices, alongside water stewardship and community development initiatives. It stated that such measures could further strengthen domestic supply chains while benefiting farmers, MSMEs, and local manufacturing.
