New Delhi [India], July 8 (ANI): India's beer industry is emerging as a significant contributor to the country's economy, agriculture and employment, with industry leaders highlighting its growing investments, support for farmers and extensive domestic supply chains.

The sector is expected to attract fresh investments as it expands, with memorandums of understanding (MoUs) worth nearly Rs 2,500 crore signed over the past six months for new brewery projects, according to Brewers Association of India Director General Vinod Giri.

'In the last six months or so, ... we saw MoUs being signed for nearly two and a half thousand crores,' Giri told ANI.

Citing an independent study by Oxford Economics, Giri said the beer industry contributes around Rs 92,000 crore to India's Gross Domestic Product (GDP), generates nearly Rs 51,000 crore in tax revenues for states, and supports employment for about 13 lakh people.

Beyond its economic contribution, the industry also maintains strong linkages with Indian agriculture through the procurement of key raw materials such as barley and rice, while supporting manufacturing, logistics, retail, hospitality and tourism.

United Breweries Limited (UBL) Managing Director and Chief Executive Officer Vivek Gupta told ANI that an independent socio-economic impact study found the company's value chain contributes nearly Rs 43,000 crore to the Indian economy while supporting around 2.95 lakh jobs and livelihoods across agriculture, manufacturing, logistics, retail, hospitality and tourism.

Gupta said UBL contributes close to Rs 44,000 crore to the economy and pays around Rs 31,000 crore in taxes. He added that the company procures nearly Rs 700 crore worth of rice and barley from Indian farmers annually, undertakes around Rs 7,000 crore in local procurement, and works with nearly 10,000 vendors, including many micro, small and medium enterprises (MSMEs).

According to the socio-economic impact study released by United Breweries Limited (UBL), which was independently conducted by Steward Redqueen, UBL sources about 93 per cent of its inputs locally, strengthening domestic supply chains across agriculture, packaging, logistics, retail and hospitality while generating additional economic activity across these sectors.

The study said the company's overall economic contribution is equivalent to nearly 0.1 per cent of India's GDP through its operations and supply chain. It also highlighted the sector's role in supporting agriculture through local sourcing and investments in sustainable farming practices, alongside water stewardship and community development initiatives. The report said such measures could further strengthen domestic supply chains while benefiting farmers, MSMEs and local manufacturing. (ANI)