Maharashtra is the powerhouse of India’s wine industry, producing 90% of the country’s wine output. According to a new report by The International Spirits and Wines Association of India (ISWAI), the state has between 40 and 45 operational wineries, most of them located in Nashik, the wine capital of India.

The report, titled “Economic Value of the Indian Alcoholic Beverage Industry”, states that Maharashtra’s wineries crushed 20,000 metric tonnes (MT) of grapes last year and produced 1.4 crore litres of wine. The annual sale of wine in India is around 1.30 crore litres, but the sector is witnessing a 20% growth each year.

The report also highlights the economic contribution of the alcoholic beverage industry to the state and the country, as well as the potential for e-commerce in the sector.

Nashik attracts over 3.5 lakh visitors annually for wine tourism

The report also underscores the relationship between the alcoholic beverage and tourism industries, especially in Nashik, which is home to 29 operational wineries. The city welcomes over 3.5 lakh visitors annually, drawn by the lush vineyards and wine tasting experiences.

The impact of wine tourism is not confined to Nashik alone; it cascades into the villages of north Maharashtra, such as Gangapur, Gangavhare, Girnare, and Sawargaon. These villages are experiencing newfound opportunities for development, such as hotel properties, local food industry, retail sector, and increased demand for produce from local farmers.

The report also urges the Maharashtra government to explore the untapped potential of e-commerce in the alcoholic beverage sector, by implementing stringent KYC norms and collaborating with a technology partner.

Maharashtra has the largest installed capacity for production of alcoholic spirits

The report also reveals that Maharashtra has the largest installed capacity in the country for the production of alcoholic spirits from molasses and grain. The state produces around 65% of India’s total spirit output, which includes whisky, rum, brandy, gin, vodka, and liqueurs.

The report also estimates that the alcoholic beverage industry contributes around Rs. 2.5 lakh crore to India’s GDP, and provides direct and indirect employment to over 40 lakh people. The industry also pays around Rs. 1.8 lakh crore in taxes to the central and state governments.

The report also suggests some policy reforms to boost the growth and competitiveness of the industry, such as rationalizing tax rates, simplifying licensing procedures, promoting responsible consumption, and curbing illicit trade.

Nita Kapoor, CEO of ISWAI, said, “The alcobev industry is the economic engine of the country and the state, and it is essential that relevant stakeholders should recognise the economic contribution of our sector.”