Social cost of alcohol use in Karnataka hits ₹51,000 crore per year
Heavy alcohol consumption in the southern Indian state of Karnataka is costing the economy an estimated 51,000 crore rupees (£4.8bn) each year, according to a new government-backed report.
This comes after the Karnataka government announced it was set to revise its liquor regulations, moving to a system where alcohol is taxed based on ABV, in a move that could significantly change the cost of spirits.
The new findings come from an excise reforms study prepared by the Resource Mobilisation Committee, which draws on data from the 2021 National Family Health Survey (NFHS).
The report says Karnataka has one of the highest levels of alcohol consumption in India, ranking seventh among states. Average consumption is estimated at 9.1 litres per person annually, well above the national average of 6.4 litres.
Karnataka is described as one of India's fastest-growing alcohol markets. Industry data cited in the report shows that 6.8 crore cases of Indian-made foreign liquor (IMFL) were sold in the 2024-25 financial year, accounting for around 17% of total IMFL sales nationwide.
However, overall alcohol use in the state remains relatively low, with 8.6% of people aged over 15 reporting consumption, compared with a national average of 10%. The report suggests that a smaller group of heavy drinkers is responsible for a disproportionate share of the social and economic impact.
Alcohol-related harm is estimated to account for between 1.4% and 2.6% of Karnataka's gross state domestic product (GSDP). The report highlights a range of consequences, including domestic violence, road traffic accidents linked to drink-driving, and increased pressure on healthcare services due to liver disease and alcohol use disorders.
It also points to financial strain on lower-income households, where spending on alcohol may divert resources away from essentials such as food, healthcare and education.
The report identifies a significant gender disparity in alcohol consumption. NFHS data indicates that 16.5% of men aged 15 to 49 reported drinking alcohol, compared with just 0.9% of women.
Despite lower consumption rates among women, the committee notes they, along with children, often bear the social and economic consequences of harmful drinking.
Data from One Stop Centres (OSCs), which support people facing domestic distress, shows thousands of cases each year. Between 2022-23 and 2024-25, the centres recorded between 6,500 and 7,800 cases annually, including domestic violence and marital conflict.
A "substantial share" of these cases was linked to alcohol use within households, the report says. Alcohol-related incidents accounted for 1,598 cases in 2022-23, 1,224 in 2023-24 and 1,498 in 2024-25, with more than 1,200 already recorded in the current financial year.
The committee concludes that alcohol misuse remains a recurring factor in cases requiring state-supported protection services.
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