On February 27th, according to the Breweries Association of India (BAI), a total of INR 55 billion (USD 604 million) will be invested in the Indian state of Uttar Pradesh over the next three years.
Two easy-open-end beer breweries under construction will receive an investment of 15 billion rupees (US$164.7 million), two easy-open-top can factories will receive an investment of 20 billion rupees (US$219.7 million), and two glass bottle factories will receive an investment of 20 billion rupees (US$219.7 million). Meanwhile, the malt factory and packaging factory will also be expanded.
According to reports, the beer industry is investing heavily in the Indian state of Uttar Pradesh and welcoming the new excise tax policy announced by the state government, stating that this move has created a stable environment for the industry's development.
One of the highlights of the new excise tax policy in Uttar Pradesh is the maintenance of the existing tax rate for beer, while slightly increasing the tax rate for spirits. It is expected that the price of Indian-made foreign liquor (IMFL) will rise by about 10 rupees per 180 milliliters, while the price of domestic spirits may rise by 5 rupees per 200 milliliters. However, the price of beer will remain unchanged. This carefully designed tax rate structure is believed to encourage consumers to switch to low-alcohol beverages without affecting national fiscal revenue.
Vinod Giri, director general of the Indian Brewers Association, said: “The beer industry and its allied industries will invest Rs55bn over the next three years” and that construction work was already under way on two new breweries costing about Rs15bn.
"Similarly, two large-scale can production plants (with an investment of 20 billion rupees) are also under construction, and several glass bottle production plants worth 20 billion rupees will be completed soon," Jiri revealed.
In addition, the Indian Agro-Industrial Association revealed that a malt factory and a new carton production plant are being planned, noting that all the planned investments will greatly promote the development of the beer industry and create job opportunities for Uttar Pradesh.
The Indian Brewers Association currently represents three leading companies, including United Breweries Limited (UBL), Anheuser-Busch InBev, and Carlsberg. These three companies operate over 55 breweries, accounting for more than 85% of beer sales in India.
The Indian Distillers Association also highlighted how the Uttar Pradesh government formulated the excise tax policy for 2026-27, pointing out that the policy would make the licensing and approval process more transparent.
The policy has also been appreciated by the Indian Brewers Association, as it brings much-needed clarity to issues such as licensing, distribution, and taxation within Uttar Pradesh, while also fostering a stable and growth-oriented environment for the thriving development of the beer industry.
Ji Li added, "This gradual approach aims to encourage consumers to consume high-quality products with low alcohol content, such as beer, without affecting the tax revenue of the state government. Although the consumption price of strong liquor has slightly increased, the prices of beverages with low alcohol content, such as beer, have not been affected."
According to reports, India ranks 13th in the world in terms of total beer consumption, with particularly high consumption in the northern regions of the country, where Delhi, Haryana, and Uttar Pradesh have high demand.
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