Karnataka is strengthening its position as one of India’s leading alco-beverage manufacturing and innovation hubs, with the State generating nearly ₹40,000 crore annually through excise revenue as per Excise Minister, R B Timmapur. 

The focus emerged during the India Chamber of Commerce Conclave 2026 held in Bengaluru. The event was attended by the Excise Minister, Joint Excise Commissioner, brewers, distillers, sustainability experts, technology providers and industry stakeholders.

Addressing the gathering, he 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.

“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.

He noted that the 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.

“We also see strong potential in emerging sectors such as alcohol tourism, brewery experiences, sustainable brewing infrastructure, and technology-led manufacturing ecosystems, which can become important economic and tourism growth drivers for Karnataka. If the industry brings forward ideas for innovation, research, manufacturing expansion or sustainability-led growth, the Government will continue to support progressive initiatives and domestic manufacturing capabilities,” he added.

The Minister also stressed the importance of sustainability initiatives including bottle recycling, wastewater treatment, water conservation and environmentally responsible manufacturing practices to protect nature and the ecosystem. He noted that strengthening domestic manufacturing and reducing dependence on imported products would help build a stronger and globally competitive Indian brewing industry.

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, 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, “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.” 

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.

Published on May 25, 2026