Lucknow | July 13, 2025
Uttar Pradesh is quickly emerging as a hub for the liquor industry, thanks to major policy reforms and growing investor confidence. The state recently hosted its first investor summit focused entirely on the alcohol sector, which attracted investment proposals worth over ₹4,320 crore.
At the event, 15 companies proposed setting up liquor, beer, wine, and alcohol production units across 15 districts, including Lucknow, Gorakhpur, and Mathura.
Rising Revenue and Production
Over the past seven years, UP’s excise revenue has more than doubled—from ₹23,927 crore in 2018-19 to ₹52,573 crore in 2024-25. Liquor production has also tripled, rising from 63 crore litres in 2018 to over 182 crore litres in 2025.
Massive Job Creation and Investment
According to Excise Minister Nitin Agarwal, the state has received 142 alcohol-related investment proposals via the Invest UP portal. So far, 135 MoUs have been signed worth ₹39,479 crore, potentially creating over 73,000 jobs. Of these, 19 units are already operational, with ₹2,339 crore invested and 2,316 jobs created.
Why Investors Are Interested
Minister Agarwal highlighted three major factors behind this investor interest:
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Transparent and reformed excise policies.
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End of monopolies by a few big players.
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Improved law and order under CM Yogi Adityanath since 2017.
Key Policy Changes Over the Years
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End of Monopoly: In 2018, the state scrapped special licensing zones and restricted the number of licences a business could hold.
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Made-in-UP Wine: Launched in 2022, wines made from locally grown fruits are exempt from excise duty.
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Liquor Shops in Malls: A 2020 policy allowed premium liquor to be sold in malls, changing consumer perception and making it more accessible—especially to women.
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New Excise Policy 2025-26: Introduced e-lottery for liquor shop allocation and created “composite shops” combining beer and IMFL outlets for convenience. Smaller bottle sizes were also introduced for premium categories.
Economic Impact
A report by the International Spirits and Wines Association of India revealed:
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UP’s alcoholic beverage market generated ₹56,000 crore in 2023-24.
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It contributes 2.4% to the state’s GDP.
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Alcohol sales account for 25% of the state’s tax revenue.
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The industry employs over 1.3 lakh people across 27,000+ retail outlets.
CM’s Role and Vision
Though CM Yogi Adityanath avoids referring to “liquor” in speeches, officials say he is deeply involved in monitoring the sector’s performance. His push for transparency led to the introduction of a track-and-trace system to curb smuggling.
Excise Commissioner Adarsh Singh also promised that suggestions from industry stakeholders will be considered while drafting the next year’s policy.
Boost to Farmers with Fruit-Based Wines
More than 3.4 lakh farmers supply grain and sugarcane for liquor production in UP. In a bid to support local agriculture, the government has exempted excise duty on wines made from local fruits for five years.
Last month, UP’s first fruit winery opened in Malihabad, Lucknow. Developed inside a 100-acre mango orchard, the winery produces wines from mangoes, mulberries, and other local fruits—without using grapes or added ethanol.
Madhavendra Deo Singh, the entrepreneur behind the project, says the wines will soon be available for direct purchase, with guided tours starting in two months. A unique hybrid drink called “braggot” (a mix of beer and mead) has also been developed.
At the summit, Superior Industries Ltd. announced a ₹74 crore expansion of its winery operations in the state, praising the state’s single-window clearance system for making approvals fast and hassle-free.
