Financial trends shaping India’s alco-bev sector: What to expect in 2025

– By Richa Singh

The Indian alcohol beverage (alco-bev) industry, known for its resilience and significant contribution to the exchequer, is expected to witness transformative trends in 2025. Building on reforms introduced in 2024, the industry is gaining momentum despite persistent challenges. Here’s a closer look at the financial trends shaping this vibrant sector in 2025:

Towards Simplified Taxation

Also Read Size of Income Tax-Act to reduce by half in new Bill: CBDT chief Budget 2025 Expectations: Anticipating regulatory shifts Budget 2025: Tax parity, simplified compliance, boost to domestic capital on startup VCs’ wishlist Budget 2025: A Balancing Act

The removal of GST from Extra Neutral Alcohol (ENA) in 2024 was a much-needed relief, reducing production costs for spirits and enabling greater competitiveness for local players. While the industry continues to face a labyrinthine tax regime, with each state imposing its own levies, cesses, and policies, there is hope that streamlining taxation at the state level could improve the ease of doing business.

In the absence of a unified tax framework, standardizing pricing and taxation, while allowing states to retain some level of fiscal autonomy through state-level cesses, offers a viable middle ground. Such measures would not only reduce compliance burdens for companies but also streamline revenue collection for governments, creating a win-win scenario. This approach could be a game-changer, attracting greater investments into the sector while ensuring fiscal stability.

ALSO READ‘Guys, Eternal is the parent…’: Zomato clears the air on name change and rebranding

Local Players and Craft Boom

India’s alcohol landscape is undergoing a dynamic shift with the rise of local players, microbreweries, and craft distilleries. From premium craft gins to artisanal whiskeys, entrepreneurs are capitalizing on the growing demand for unique, high-quality products. These ventures are not only catering to the discerning urban consumer but also boosting regional economies by sourcing local ingredients and employing local talent.

This surge in microbreweries and distilleries is creating a ripple effect across related industries, including packaging, logistics, and tourism. For instance, many regions are now offering immersive distillery experiences, attracting tourists eager to learn about the craft and heritage behind their favourite beverages. Supporting this trend through favourable policies and financial incentives could further bolster the sector.

 » Read More

Related Articles

Bizongo ramps up logistics arm to boost platform play

As it eyes the unicorn status, business-to-business (B2B) raw materials marketplace Bizongo, which is currently valued at $980 million, is enhancing its logistics vertical to boost its platform capabilities. The logistics arm, launched in November 2023, currently works on an asset-light model with partnerships with vendors, but the startup intends to start owning warehouses in

Textile units under GST lens for mis-classifying services

Central Goods and Services Tax (CGST) officials in the recent months have investigated over two dozen textile manufacturing companies across the country for mis-classifying textile processing activities and subsequently paying lesser tax. According to official sources, the CGST department has observed that several textile manufactures are recording activities which involve ‘changing the nature of cloth’

AI being used for collusion, says CCI chairperson

Artificial intelligence (AI) is being used for “collusion” by sections of Indian industry, Ravneet Kaur, chairperson of Competition Commission of India (CCI) said on Sunday, adding that the regulator would equip itself to deal with it. “Companies are using AI to coordinate prices without explicit agreements, and are engaging in algorithmic discrimination under the garb

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
0FollowersFollow
0SubscribersSubscribe
- Advertisement -

Latest Articles

Bizongo ramps up logistics arm to boost platform play

As it eyes the unicorn status, business-to-business (B2B) raw materials marketplace Bizongo, which is currently valued at $980 million, is enhancing its logistics vertical to boost its platform capabilities. The logistics arm, launched in November 2023, currently works on an asset-light model with partnerships with vendors, but the startup intends to start owning warehouses in

Textile units under GST lens for mis-classifying services

Central Goods and Services Tax (CGST) officials in the recent months have investigated over two dozen textile manufacturing companies across the country for mis-classifying textile processing activities and subsequently paying lesser tax. According to official sources, the CGST department has observed that several textile manufactures are recording activities which involve ‘changing the nature of cloth’

AI being used for collusion, says CCI chairperson

Artificial intelligence (AI) is being used for “collusion” by sections of Indian industry, Ravneet Kaur, chairperson of Competition Commission of India (CCI) said on Sunday, adding that the regulator would equip itself to deal with it. “Companies are using AI to coordinate prices without explicit agreements, and are engaging in algorithmic discrimination under the garb

How Women Can Build Wealth Through Real Estate: Key investment tips

Owning a home is one of the most significant steps toward financial security, both for individuals and families. While men have traditionally taken the lead in property purchases in India, the trend is gradually changing, with more women actively investing in real estate. Recognizing this shift, both state governments and financial institutions have introduced various

Ghaziabad Namo Bharat Station to get tech-enabled co-working spaces

The National Capital Region Transport Corporation (NCRTC) is set to launch a co-working space, named MetroDesk, at the Ghaziabad Namo Bharat Station soon. This innovative initiative aims to turn urban transit areas into dynamic business hubs, introducing a pioneering coworking model within the Namo Bharat network. MetroDesk is tailored for professionals, entrepreneurs, and small businesses