Context:
The Uttar Pradesh Excise Department’s first-ever investor summit focused exclusively on the alcohol industry, hosted in Lucknow.
More on News:
- The investors’ summit generated business proposals totaling ₹4,320 crore.
- The one-day summit aimed to promote investment in alcohol production, distribution, marketing, and related sectors in the state.
- It sought to offer a supportive policy environment and share policy-related information with potential investors.
- While the state has traditionally been recognized for its service sector, it is now rapidly developing into a manufacturing hub.
- 142 investment proposals for alcohol-based industries have been submitted via the Invest UP portal, resulting in the signing of 135 Memorandums of Understanding (MoUs) worth ₹39,479 crores.
- These investments are expected to create 73,524 jobs.
- Forty-six projects have completed land acquisition and are ready for construction, representing a committed investment of ₹7,888 crore.
- Nineteen units are already operational, with investments totaling ₹2,339 crore.
- These units have created employment for 2,316 people.
- During the investor summit, the UP’s new excise policy and briefed to participants on industry-friendly regulations, incentive schemes, e-governance initiatives, transparency measures, the single-window clearance system, and the online licensing process.
- Multiple proposals across alcohol production, brewery, winery, and related sectors were showcased at the summit, with potential investments amounting to around ₹3,600 crore.
Sectors Contribution to State’s Revenue And GDP
- An economic report by the International Spirits and Wines Association of India highlighted that Uttar Pradesh’s alcoholic beverages industry generated ₹56,000 crore in market revenue in FY 2023–24.
- The industry contributed 2.4% to the state’s Gross Domestic Product (GDP).
- The report states that alcohol sales contribute 25% of Uttar Pradesh’s total tax revenue.
- The Indian Made Foreign Liquor (IMFL) segment has seen a 10% annual growth in volume, fueled by increasing demand for premium brands.
- Over 3.4 lakh farmers in the state supply grain and sugarcane used in beverage production.
- Licensed food and beverage outlets derive around 19% of their revenue from alcohol sales.
- These establishments collectively employ approximately 50,000 people.
- The report highlighted that Uttar Pradesh has 27,308 liquor retail outlets, employing 130,000 workers.
- 80% of the city’s container glass production is used by the beverage industry.
