Learn the economics of what India drinks

Alcohol for human consumption is constitutionally left to states as a revenue source, so it sits outside GST and is taxed via state excise — the single biggest reason prices differ across states.

Because each state sets its own excise duty, retail model (private vs. state monopoly) and licence fees, the same bottle can cost very differently across a state line.

A clear rundown of prohibition (dry) states and the economics and enforcement realities behind alcohol bans.

Because CSD sales are exempt from crippling state excise duties, the military gets premium liquor at a fraction of the civilian price—inevitably creating a highly-demanded civilian black market for 'fauji' bottles.

Duty-Free removes the tax, but adds massive airport retail margins. Depending on the state you live in, the local liquor shop might actually be cheaper than the airport.

Plain-English guide to Indian serving measures and the concept of a standard drink, so people actually know how much they're drinking.

The patiala peg is 120ml — double a regular peg and about four standard drinks in one glass. Its name comes from a piece of Punjab folklore involving the Maharaja of Patiala, a British polo team and a deliberately generous pour.

Bars price on pour cost, rent, staff and experience — the liquid is often the smallest part of what you pay for.

Goa isn't just a party state; it has the most progressive, startup-friendly excise laws in India. Cheap licenses and relaxed distillation rules created the perfect incubator for the craft spirits boom.

Direct alcohol advertising is banned, so brands advertise 'surrogate' products (water, soda, music, events) to keep the brand visible legally.

Expectation and priming shape perceived taste — branding does real perceptual work, which is exactly why it commands a price premium.

Rising incomes, aspiration and 'made in India' pride are pushing consumers toward higher-priced, higher-margin premium and craft spirits.

From mahua and handia to feni and toddy, India has a deep heritage of community-brewed drinks — culturally significant, often outside the formal excise economy, and increasingly being formalised and premiumised.

The Northeast has a rich culture of rice beers and millet brews — apong, zutho, kyat, tongba and more — each tied to specific communities, festivals and rituals.