India consumes 55% more alcohol than in 1992

As multinational drinks groups attempt to increase their footprint in India, a new report finds that alcohol consumption across the country has risen by 55% in the last 20 years.

Conducted by the Organisation for Economic Cooperation and Development (OECD), the study examined the economic and health implications of alcohol use across 40 nations in the last two decades.

The findings revealed a “substantial rise” in India, despite per capita consumption remaining low.

The report, named “Tackling the harmful use of alcohol – Economics and public health policies”, claimed that India had the third highest rise in alcohol intake between 1992 and 2012, preceded only by the Russian Federation and Estonia.

Vodka sales alone soared 14% in India during the last financial year, boosted by several spirits producers “aggressively introducing flavours” to cater for growing consumer demand.

UK-based drinks group Diageo acquired a controlling stake in McDowell’s No.1 producer United Spirits in June last year, making India one of its “largest markets”, while Pernod Ricard looked to borrow £161 million in order to make its mark in the country.

However, the OECD report was branded “badly flawed” by US trade body Discus earlier this month.

A subsection of the study had suggested a 10% hike alcohol tax in a bid to curb drinking, which the body labelled “misdirected”.