Karnataka is strengthening its position as one of India’s leading alco-beverage manufacturing and innovation hubs, with the state government signalling support for sustainability-led growth, domestic manufacturing, and expansion of brewery ecosystems beyond Bengaluru.
The focus emerged during an industry conclave held in Bengaluru attended by the Hon’ble Excise Minister, Joint Excise Commissioner, brewers, distillers, sustainability experts, technology providers, and industry stakeholders.
Addressing the gathering, the Hon’ble Excise Minister, Shri R B Timmapur, said Karnataka has undertaken significant excise and regulatory reforms over the last one year to improve ease of doing business and strengthen the state’s 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.
“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,” he added.
“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,” the Minister said.
Industry leaders at the conclave noted 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 environment.
Speaking at the event, Shri Shivkumar Eashwaran, Chairman, Indian Chamber of Commerce, Chairman – Canadian Crystalline Water India Limited & Consul General (Hon.) of the Republic of Armenia in South India, said sustainability, inclusive growth, and resource optimisation will define the future of the alco-bev industry.
“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.
Shivkumar further emphasised the importance of ensuring that the growth of the alco-bev sector benefits the entire value chain, including 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 growth of the brewery ecosystem should not benefit only breweries, manufacturers, and front-end industry players, but also farmers and raw material providers at the grassroots level. This is how we can ensure inclusive industrial development, stronger rural economies, employment generation, and growth that benefits ordinary people as well,” he added.
The conclave also highlighted Karnataka’s potential to become a major manufacturing destination for brewing equipment and allied technologies by leveraging the industrial strengths of Tier 2 and Tier 3 cities.
Industry representatives called for stronger collaboration between government, academia, and manufacturers to drive research, engineering excellence, automation, product innovation, and skill development in brewing technology.
The event also recognised excellence in India’s craft brewing industry. American Brew Works received the Best Brewer Award, while Kling Brewery and Oasis received the Best Beer Line-Up Awards.
Industry experts observed that India’s craft beer and premium spirits segment is entering a transformative phase, with Indian brands increasingly gaining international visibility and export opportunities.
The conclave concluded with a call for stronger collaboration between government, industry, sustainability experts, manufacturers, and technology providers to build a globally competitive and environmentally responsible alco-bev ecosystem from Karnataka.
