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If you have a look at all these news clippings, the deeper you hunt, the more clear it becomes that each of
these individual cases has one thing in common, THE ALCOHOL INDUSTRY

So here we are today, to talk about the Alcohol Industry and its Socio-Economic Significance in India

SWOT ANALYSIS
STRENGTHS -
Market:The alcohol industry in India is one of the largest and fastest growing industries in the country. India
is one of the largest consumers of alcohol in the world coming in at the 3rd largest consumer globally. Our
Indian economy consists of a growing middle class that has more disposable income to spend on alcohol
now more than ever.
Cultural acceptance: Alcohol has been a part of indian cultural traditions for centuries and is accepted as a
social activity in many parts of the country
Low production costs: India has a large agricultural sector that can produce raw materials needed for
alcohol production at a lower cost than many other countries

With its Strengths do come its Weaknesses

WEAKNESSES
- Stigma and social issues: Alcohol consumption is still stigmatized in many parts of Indian society,
particularly for women, and excessive drinking can lead to social issues such as domestic violence and
crime.
Health concerns: Alcohol consumption can lead to a range of health problems, including liver disease,
cancer, and mental health issues.
High taxation: alcohol is subject to high taxes as it is a demerit good, which can make it less affordable for
many consumers.
Limited market access: Despite it being a growing industry, certain Indian states have implemented policies
that restrict or prohibit the sale and consumption of alcohol, limiting the potential market for the industry.

OPPORTUNITIES
- Export potential: India's large and growing market for alcohol presents an opportunity for domestic
producers to expand their operations and tap into export markets.
Growing demand for premium products: As the middle class grows and becomes more sophisticated,
there is increasing demand for premium and high-end alcohol products.
Diversification of products: There is potential for the industry to diversify its products, such as producing
craft beer or flavored spirits, to cater to changing consumer tastes.
Medical research: India has a large and growing medical research sector that could potentially find new
medical applications for alcohol.
THREATS
- Increasing competition: Domestic and international competition in the alcohol industry is increasing, which
could potentially erode market share for Indian producers
Government regulations: The Indian government has the power to increase taxes, impose restrictions on
advertising, or implement other policies that could negatively impact the industry.
Changing consumer preferences: Consumer preferences for alcohol are subject to change, and the
industry may need to adapt to shifts in taste and trends.
Health concerns: As health concerns related to alcohol consumption continue to mount, there may be
increasing pressure on the industry to change its practices or face public backlash.

STEEPLE

Social factors - India is a culturally diverse country with various social norms and beliefs that influence
attitudes towards alcohol consumption. Some regions and communities in India have a long history of
abstaining from alcohol, while others have a more liberal attitude towards drinking, certain religions and
cultures also discourage or prohibit the consumption of alcohol altogether. These cultural and religious norms
shape individual attitudes and behaviors towards alcohol, influencing both the demand and supply of alcohol
in certain regions.

In recent years, there has been a growing concern about the harmful effects of alcohol, and several states in
India have implemented stricter regulations and higher taxes to curb alcohol consumption.

-Awareness and Education: Promoting public awareness about the health risks associated with excessive
alcohol consumption, the importance of responsible drinking, and the potential social consequences can help
shape social norms and control the demand for alcohol.

Economical factors - The alcohol industry in India is a significant contributor to the country's economy,
providing employment opportunities and generating tax revenue for the government.
However the industry is also affected by economic factors such as inflation, currency fluctuations and
changes in consumer spending patterns.

India’s alcohol beverage consumption (in Billion Liters) has only been rising as shown by this demographic
and is estimated to rise to 5.91 billion liters in 2023 and 6.21 bl liters in 2024
Alcohol’s excise revenues were slated to nearly double to ₹9,500 crore in 2022-23. However, excise duties
are not just a factor of higher consumption. In 2020-21, excise duty collections were the highest for states, as
they levied more taxes on alcohol.

Political factors - The Indian government regulates the sale and consumption of alcohol through
state-specific policies and regulations, and the alcohol industry is subject to various taxes and fees.
Political instability and changes in government policies can impact the alcohol industry, as seen in recent
years with the implementation of stricter regulations in some states.

Which causes…

Legal factors - The legal landscape for alcohol in India to be complex. Alcohol advertising and promotion
are also heavily regulated, with strict guidelines around the content and placement of ads.

Gujrat, Bihar, Mizoram, Tripura, Nagaland and the Union Territory of Lakshadweep have completely banned
alcohol
Despite rules in place, different states of the country have been facing tragedies where alcohol has claimed
several lives. States like Punjab and Bihar where liquor is completely banned have reported tragedies where
people died after consuming illicit liquor.

With the analysis of liquor laws in the various states of India, it can be concluded that the state governments
are attempting to get the crime rate and the hazardous consequences in control. And as a result of this
attempt, the permitted age for consuming alcohol differs in the various states.
Through these laws, states make efforts to save the future youth and the next generation of the country.
The laws made with the motive to lower the rate of consumption of alcohol are violated rigorously. People
who are habitual drinkers tend to avoid the state liquor laws to drink liquor.
For example, in Delhi the government imposed a fine on consuming liquor in public yet people continue to
consume alcohol publicly despite having to pay fines.

Ethical factors - The alcohol industry in India is often criticized for promoting excessive or irresponsible
drinking, particularly among young people.
There are also ethical concerns around the marketing and sale of alcohol in areas with high rates of poverty
and alcoholism.
-Social Stigma: Social norms can create a stigma around excessive or irresponsible alcohol consumption.
Individuals who are seen as heavy drinkers or who engage in problematic drinking behaviors may face social
disapproval
-Peer Pressure: Peer groups, friends, and social networks can influence an individual's drinking habits. If
drinking alcohol is seen as socially desirable or necessary for social acceptance in certain circles, it can
increase the demand for alcohol.

ALCOHOL’S BODY COUNT


• In India, over 14 percent of all accidents are alcohol related
• 16 percent of all fatal accidents are also due to alcohol
• Alcohol use disorders were responsible for over 3% of all deaths among men and 1.6% of all deaths among
women in India .
• Over 2.4 million years of life lost due to alcohol related premature mortality and morbidity in India
• A survey in 2017 claimed that over 30% of students out of over 6000, reported having consumed alcohol,
this number has been increasing in recent years
• The average age of alcohol consumption among students was 14 years old

EFFECTS ON CHILDREN
1.Health risks: Alcohol abuse among students can lead to various health risks, including liver damage,
cardiovascular problems, weakened immune system, increased risk of accidents and injuries, and mental
health issues such as anxiety and depression.
2.Academic performance: Excessive alcohol consumption can negatively impact academic performance.
Alcohol impairs cognitive function, memory, and concentration, making it difficult for students to focus, retain
information, and perform well in their studies.
3.Social consequences: Alcohol can influence social behavior, and excessive drinking can lead to poor
decision-making and risky behaviors. This may include engaging in unsafe sexual activities, violence, or
involvement in legal issues.
4.Relationship strains: Alcohol abuse can strain relationships with friends, roommates, and romantic
partners. Disruptions, conflicts, and breakdowns in communication are common consequences of excessive
drinking.
5.Financial implications: Frequent alcohol consumption can lead to financial strain on students. The costs
of purchasing alcohol, going out to bars or clubs, or attending parties can add up, affecting students' budgets
and potentially causing financial stress.
6.Time management and productivity: Alcohol-related activities can consume significant amounts of time,
affecting a student's ability to manage their time effectively and prioritize academic commitments. This can
result in missed assignments, poor time management skills, and decreased productivity.

REASONS WHY STUDENTS DRINK

PEER PRESSURE
• Peer pressure is one of the main causes for underage drinking. The age range of 11-18 years is an
impressionable one and is easily susceptible to outside influence. Whether it be friends, family or even social
media.
• By the time most teens are in high school, two-thirds have tried alcohol.
• Marketing and advertising of alcohol also contribute to children's alcohol consumption. Advertisements
promoting alcohol are often targeted at young people, with messages that suggest that alcohol consumption
is fun, exciting, and a rite of passage. This can create a desire for children to try alcohol and become a part of
the "cool" crowd

ENVIRONMENT
• Parental influence is another significant factor that contributes to children drinking alcohol. Parents who
consume alcohol regularly may inadvertently encourage their children to do the same. Children who grow up
in households where alcohol is readily available and frequently consumed are more likely to consume alcohol
themselves.
• If children grow up in an environment where their parents or peers drink a lot and/or view drinking favorably,
they may be more likely to drink themselves.

TO COPE WITH AN UNDERLYING PROBLEM


• The teen years are tough and kids may turn to alcohol in a misguided attempt to cope with problems such
as stress, boredom, the pressure of schoolwork, not fitting in, problems at home, or mental health issues
such as anxiety, childhood trauma, ADHD, or depression. Since alcohol is depressive, using it to
self-medicate will only make problems worse.

ALCOHOL INDUSTRIES HAND IN TEEN-DRINKING


• blaming the alcohol industry in its entirety for teenage drinking in India may oversimplify a complex issue.
The responsibility for underage drinking lies with a combination of factors, including societal norms, parental
influence, peer pressure, inadequate regulation, and individual choices. However, there are some aspects
where the alcohol industry's practices may contribute to underage drinking:

• Marketing and advertising: Alcohol companies use various marketing techniques that could inadvertently
attract underage individuals. Advertisements that feature youthful and aspirational lifestyles, popular
celebrities, and music can potentially appeal to younger audiences, including teenagers.

• Product availability and accessibility: The availability of alcohol and the ease of access can play a role in
underage drinking. In some cases, alcohol may be readily available at stores or establishments with weak
enforcement of age verification policies, making it easier for underage individuals to obtain alcohol.

• Lack of strict enforcement: While there are legal restrictions on the sale of alcohol to minors in India, the
enforcement of these regulations may not always be stringent. This can allow underage individuals to access
alcohol more easily.

• Cultural factors and societal norms: Alcohol is often a part of social gatherings and celebrations in Indian
culture. This can normalize and normalize drinking behavior, making it more likely for teenagers to
experiment with alcohol at an earlier age

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