With an ambitious income target of ₹68,000 crore for the next fiscal year, Uttar Pradesh is preparing for a major expansion of its excise economy. With the help of structural changes and improved regulatory control, the state government is concurrently updating its excise policy to establish Uttar Pradesh as a competitive center for liquor industry, investment, and export.
According to Excise Minister Nitin Agarwal, the upcoming excise strategy would be heavily focused on exports, with a particular emphasis on long-term sectoral reforms, market development, and brand promotion. The goal is to unleash continuous income growth by utilizing the state’s expanding distillery capacity, improving investor trust, and enhanced compliance processes.
“Exports will be given priority in our upcoming excise strategy. In order to increase the presence of Uttar Pradesh-produced liquor in both local and international markets, we want to develop the state’s brand identity. Although some UP businesses have made it to other markets, their scope is still restricted, according to Agarwal.
The excise collection target for the current fiscal year 2025–2026 was set at ₹63,000 crore. The minister claims that by December, receipts had already surpassed ₹41,000 crore, showing that the state is well on its way to reaching its yearly goal.
Regular changes that boost revenue
Over the previous four years, Uttar Pradesh’s excise revenues have almost doubled. The income objective has been increased to ₹68,000 crore from ₹36,000 crore in 2022. Agarwal credited the excise ecosystem’s structural improvements, enhanced enforcement procedures, and regular regulatory amendments for its rapid expansion.
Further rationalization of licensing costs and processes will be a key component of the future policy. Even though the government has significantly streamlined the excise system over the past four years, authorities think more changes are needed to boost operating margins, draw in organized players, and make exports profitable.
The minister also emphasized how sectoral growth is fueled by increased openness and the elimination of monopolistic behaviors. E-auctions have increased participation and drawn in new operators. According to him, “nearly 40% of retail shop winners through e-auctions this year were outsiders, which reflects growing investor confidence and a more open market structure.”
Investments, technology, and production capacity
Technology-driven monitoring has improved supply chain supervision. Every bottle of alcohol sold in the state is digitally monitored from the distillery to the retail location under the track-and-trace system. “Every bottle sold now has full data visibility. As a result, illicit alcohol has all but disappeared. Agarwal stated, “I can state with confidence that 99.9 percent of liquor sold in Uttar Pradesh is through legitimate channels.”
Capital investment has also significantly increased in the excise industry. Memorandums of understanding worth about ₹30,000 crore have been inked in recent years, greatly increasing the total investments, which were previously expected to be approximately ₹5,000 crore.
Uttar Pradesh’s manufacturing capability has expanded quickly. There were just 22 distilleries in the state in 2022. The minister stated that capacity growth is essential to the state’s export goals. “Today, the number is close to 100, and a new distillery will begin operations in Farrukhabad in March.”
Agarwal emphasized that Uttar Pradesh’s enormous agricultural base supports its success in grain-based liquor. The industry is financially appealing since it uses corn and wheat to produce both ethanol and alcohol. The state wants to take advantage of the growing market acceptability of grain-based booze.
A balanced approach to consumption and control
Revenues have increased by over 30% in the retail sector since composite stores were introduced, which sell both Indian-made foreign liquor and beer under one roof.
Agarwal underlined that the government does not encourage alcohol usage despite the vigorous push for investment and income. “The government does not promote alcohol use through advertising. But if there is consumption, it is our duty to provide high-quality goods, reasonable prices, and the avoidance of illicit alcohol,” he stated.
In order to draw in investments, expand manufacturing, boost exports, and position Uttar Pradesh as one of India’s top excise economies, he said, the government would keep improving the excise framework.
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