Alcohol taxes make up 19% of states’ revenue, Telangana leads at 32%

Alcohol-related taxes accounted for 19% of states’ own tax revenues in FY25, with collections reaching ₹4 lakh crore.
Telangana relied most on alcohol revenue, which made up 32% of its own tax collections in FY25, followed by Tamil Nadu at 27%.
Premium liquor sales grew at a 10.2% annual rate between 2022 and 2025, compared with 1.1% for cheap products.
India’s alcohol industry was valued at ₹6.2 lakh crore in 2025, as consumers increasingly shifted towards premium products.

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