Indian alcohol market is dominated by locally produced alcohol with 99.3% market share. Distilled spirits account 90% of the total consumption in India. Country liquor, Indian Made Foreign Liquor (IMFL) and Imported distilled spirits are the three main segments of distilled spirits. Consumption of alcohol in India is in fact driven by the local market and imported alcohol and wine account less than 1%. Further, market concentration is high, with the dominance of a very few number of producers. However, the market has been growing strongly and is expected to continue to experience the growth.
Liquor manufactured in India comprises beer, wines, whisky, rum, vodka, gin and brandy. Draught beer has been recently introduced in India. Canned beer is an even more recently introduced new beverage. However, production of Alcohol drinks from non-molasses sources is very small in India. So, the Government of India encourages investment as well as up-gradation of technology in the field of non-molasses based alcoholic drinks and beer.
The regulators and sectoral laws of wines and spirits sector vary from state to state. FDI up to 100% is permissible, subject to licence by the appropriate authority, for distillation and brewing of potable alcohol.
 
CLG Wines and Spirit Practice

CLG has extensive experience in rendering legal services on various aspects of wines and spirits sector. It has been advising multinational companies in this sector on various issues including: