Why alcohol consumption is on the rise in India

A recent study by the medical journal Lancet showed that there has been an increase in alcohol consumption in India over the last three decades.  

The analysis by Lancet showed consumption was the highest among men in the age group of 40-64 years, in which alcohol consumption has increased by 5.63% since 1990, followed by the 15-39 age group with a jump of 5.24%. For the elderly it has increased by 2.88%.

India's latest National Family Health Survey, published in May, also revealed that alcohol consumption among both men and women was higher in rural parts of the country than in urban areas. 

Overall, around 1% of Indian women aged 15 and over drink alcohol, compared to 19% of men in the same age group.

The northeastern Arunachal Pradesh state ranks first nationwide, with 53% of men and 24% of women in the state consuming alcohol.

Rising incomes and urbanization driving growth

The increase in consumption can be attributed to multiple factors, including the rising levels of disposable income and a growing urban population, among others.

"Rising urbanization, increased access and advertising have all contributed to higher alcohol consumption," Girdhara Babu, professor of Life Course Epidemiology at the Public Health Foundation of India, told DW.

"It should also be noted that tax levied on alcohol is one of the major sources of revenue for state governments," Babu added.

India's $20 billion (€20.5 billion) alcohol market is set to grow by 7% annually in the 2021-25 period, with whisky and spirits among favorites, Reuters quoted IWSR Drinks Market Analysis as saying.

India was one of the fastest-growing markets for liquor until the COVID pandemic hit consumption, which dropped nearly 12%. 

"Penetration and frequency of alcohol consumption are rising with changes in its social acceptance, urbanization, female empowerment, rising incomes, and product innovations," Vinod Giri, director general of Confederation of Indian Alcoholic Beverage Companies, told DW.

"It is a natural trend as India evolves socially and economically and we expect it to continue for some time," he added.

An increasing number of young people, particularly in cities, are now socializing in restaurants, clubs, pubs and bars after the pandemic-induced isolation for two years.

And with the Hindu festive season around the corner, alcohol companies are producing and distributing more products, to drive higher sales and maximize profits.

"Quite a lot of the growth has also come in from new categories like light beer, wines, light alcoholic beverages, liqueurs and single malts," said Vijay Kauthekar, a vice president of sales at John Distilleries.

"India did not have a fine dining culture in the 1990s and few clubs or restaurants served alcohol, this has changed completely today with a vibrant fine dining culture across all metros and smaller towns countrywide," he told DW.

Widespread problems with illicit alcohol

Despite the growth in the consumption of branded spirits, the problems related to illegally brewed alcohol remain widespread in the country.

Illicit alcohol has also become a hugely profitable industry across the South Asian nation where bootleggers pay no taxes and sell enormous quantities of their product to the poor at a cheap rate.

Deaths from illicit liquor, popularly called hooch, are common in India, with hundreds of people losing their lives every year.

According to the National Crime Records Bureau (NCRB), 6,172 people died between 2016 and 2020 due to the consumption of illicit liquor in India.

The International Spirits and Wine Association of India estimates that around 40% of the five billion liters of alcohol consumed every year in the country is illegally produced.

The liquor is often spiked with methanol to increase its potency. If ingested, methanol can cause blindness, liver damage and death.

Edited by: Srinivas Mazumdaru