Karnataka Strengthens Sustainable Brewing Ecosystem with ₹40,000 Crore Industry Revenue

Karnataka Strengthens Sustainable Brewing Ecosystem with ₹40,000 Crore Industry Revenue

By Manu Vardhan Kannan

Published on May 28, 2026

Karnataka is further strengthening its position as one of India’s leading alco-beverage manufacturing and innovation hubs, with the state government signalling strong support for sustainability, domestic manufacturing, and expansion of brewery ecosystems beyond Bengaluru.

The focus came into discussion during an industry conclave held in Bengaluru, attended by the Hon'ble Excise Minister, Joint Excise Commissioner, brewers, distillers, sustainability experts, technology providers, and key industry stakeholders.

Addressing the gathering, Excise Minister, R B Timmapur highlighted the state's recent efforts towards improving ease of doing business and building a stronger alco-bev ecosystem.

"Over the last one year, Karnataka has undertaken a series of progressive excise and regulatory reforms aimed at improving ease of doing business for breweries, distilleries, and alco-bev manufacturers. We are moving towards a more transparent, technology-enabled, and industry-friendly ecosystem through simplified label approvals, streamlined declared price and MRP updation systems, digital compliance mechanisms, annual licence renewal reforms, and operational rationalisation measures," the Minister said.

He further added, "The Government is committed to providing long-term policy stability and regulatory visibility for the industry till 2030. Stable and forward-looking policy frameworks are essential to attract investments, scale manufacturing ecosystems, strengthen domestic production capabilities, and position Karnataka as a leading destination for brewing innovation and alco-bev manufacturing."

The Minister also highlighted the sector’s economic impact, noting that Karnataka generates nearly ₹40,000 crore annually through excise revenue, reinforcing the alco-bev industry's importance to the state economy.

"Karnataka today generates nearly ₹40,000 crore annually through excise revenue, underlining the alco-bev sector's importance to the state economy and industrial ecosystem. At the same time, our objective is not merely revenue generation, but building a balanced ecosystem that benefits consumers, industry, farmers, manufacturers, and local communities through sustainable and inclusive growth," he added.

Industry participants at the conclave observed that Karnataka has emerged as a preferred destination for breweries, premium spirits manufacturing, and craft beer innovation due to its strong infrastructure, skilled workforce, entrepreneurial ecosystem, and progressive policy support.

Speaking at the event, Shri Shivkumar Eashwaran, Chairman, Indian Chamber of Commerce, Chairman - Canadian Crystalline Water India Limited and Consul General (Hon.) of the Republic of Armenia in South India, stressed the growing importance of sustainability in the sector.

"Water conservation, wastewater recycling, energy efficiency, and circular economy practices must become integral to brewing and distillation operations. Karnataka has the opportunity to emerge as a globally benchmarked sustainable brewing ecosystem," he said.

He also highlighted the need for inclusive growth across the value chain, especially for farmers and rural communities.

"Karnataka today has one of the strongest economies in India, and as the alco-bev sector grows, the benefits of this growth must reach every stakeholder across the value chain. We should not leave our farmers behind in this journey. Raw materials required for breweries, including barley, grains, fruits, and other agricultural produce, should increasingly be sourced from our own farmers, thereby strengthening local supply chains and rural livelihoods," he said.

The conclave further highlighted opportunities for Karnataka’s Tier 2 and Tier 3 cities to emerge as manufacturing hubs for brewing equipment and allied technologies. Industry representatives also called for stronger partnerships between government, academia, and manufacturers to drive research, innovation, engineering, automation, and skill development.

The event also recognised excellence in India’s craft brewing segment. American Brew Works received the Best Brewer Award, while Kling Brewery and Oasis were honoured with the Best Beer Line-Up Awards.

Industry experts noted that India’s craft beer and premium spirits market is entering a new phase of growth, with Indian brands increasingly gaining global attention and export opportunities. The conclave concluded with a call for stronger collaboration across government, industry, sustainability experts, and technology providers to build a globally competitive and environmentally responsible alco-bev ecosystem.


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