And why the next phase of growth needs demand to lead, writes Maj Gen (Dr) Rajesh Chopra, AVSM (Retd.), Director General, Indian Malt Whisky Association (IMWA)
Over the last few years, India’s economic story has been anchored by decisive public investment. Capital expenditure on infrastructure, manufacturing, logistics, and digital public goods has laid the foundation for long-term competitiveness. Roads have expanded, ports have modernised, supply chains have strengthened, and confidence in India’s growth trajectory has been reinforced globally. This phase was necessary, and successful.
As India approaches Budget 2026, the next chapter of Viksit Bharat calls for a complementary shift: from capacity creation to consumption confidence. For sustained, inclusive growth, demand must now begin to play a more central role alongside capex. Few sectors illustrate this transition better than premium Indian single malt whisky.
From Volume to Value: Where the Industry Stands Today
India is already the world’s largest whisky consuming nation, but the last five years have marked a decisive move from mass consumption to premium choice. According to industry estimates and IWSR data, Indian single malts have grown at over 20 to 25 percent annually, with domestic sales overtaking Scotch single malts in 2024. Homegrown labels now account for more than half of India’s single malt consumption, an extraordinary shift for a category that was once considered niche.
Exports tell a similarly encouraging story. Ministry of Commerce data shows whisky exports crossing 52 million litres in FY2024–25, growing nearly 18 percent year-on-year. Indian malt whiskies are now present across the US, UK, Europe, the Middle East, and global travel retail. International awards and shelf placements suggest that Indian malts are no longer novelties, they are being evaluated on quality, consistency, and credibility.
This momentum has emerged within the broader macro stability created by government-led investment. The opportunity before Budget 2026 is to build on that foundation by encouraging sectors where value, branding, and consumer aspiration converge.
Why Demand-Led Growth Matters Now
Demand-led growth is not about reducing discipline or fiscal prudence. It is about unlocking the next multiplier effect. Premium categories such as single malt whisky generate high value per unit, strong tax contributions, export earnings, and employment across agriculture, distillation, packaging, logistics, hospitality, and tourism.
Importantly, premium consumption reflects rising incomes and maturing consumer preferences, both indicators of economic progress. Encouraging this shift aligns with the broader national objective of moving India up the global value chain, rather than competing solely on scale.
Policy Evolution: Building on What Already Works
Alcohol remains a state subject, and recent budgets have respected this federal balance. At the same time, the Centre has demonstrated how calibrated policy moves, such as selective customs rationalisation and trade negotiations, can signal confidence without disruption. The focus for Budget 2026 should be continuity with refinement.
One area of improvement is coherence. Today, the premium spirits industry operates across multiple state excise regimes with varying fee structures, compliance requirements, and market access norms. While diversity is inherent to India’s federal structure, greater alignment on principles, especially for premium, domestically produced categories, would support ease of doing business and encourage investment.
Another priority is formalising standards. Globally, established whisky-producing nations safeguard their categories through clear definitions, provenance norms, and quality benchmarks. India is steadily moving in this direction, aided by industry bodies such as the Indian Malt Whisky Association (IMWA), which has been actively engaging with policymakers to secure Geographical Indication (GI) recognition for Indian Single Malts and to define frameworks that preserve authenticity, quality, and origin. Budget 2026 can reinforce this momentum by supporting certification mechanisms, GI-led protection, and export-oriented standards that build global trust in Indian malts, strengthening credibility without overregulation.
Supporting Growth Without Distortion
The industry is not seeking subsidies. What it needs is enablement. Cost pressures, particularly around raw materials, energy, and supply chains, impact margins and long-term planning. Targeted agricultural productivity measures, energy efficiency incentives, and smoother interstate logistics can ease these pressures organically.
Equally important is consumption facilitation. Enhancing duty-free allowances, supporting travel retail, and simplifying export documentation can unlock demand from both domestic and global consumers. These are growth levers that do not strain fiscal balances but amplify returns.
Aligning with India’s Global Aspirations
Premium Indian malt whiskies sit at the intersection of manufacturing, culture, and soft power. Much like Japanese whisky or Irish whiskey in earlier decades, they have the potential to become global ambassadors for Indian craftsmanship. Distillery tourism, experiential retail, and global brand storytelling align naturally with India’s ambitions in tourism, services, and creative industries.
Looking Ahead to Budget 2026
Budget 2026 does not need to rewrite the economic playbook. It needs to evolve. By complementing capex with confidence in consumption, India can unlock the next phase of sustainable growth. Supporting premium, value-led industries is not a departure from development, it is a marker of it.
A Viksit Bharat is one where infrastructure is strong, consumers are confident, and Indian products command respect globally. Indian single malts are already moving in that direction. With the right policy signals, Budget 2026 can help accelerate that journey, from promise to permanence.
Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the views of the publication.
