No Duty, Big Impact: How Imported Beer Is Undercutting Indian Brands
Indian brewers are raising strong concerns about what they call an unfair market dynamic in Delhi, where duty-free beer from Bhutan and Nepal disrupts the competitive landscape. They argue that with no customs duty applied to these imports, local breweries are being pushed out of the market due to pricing alone.
Unmatched Price Advantage Hurting Indian Labels
Thanks to trade treaties with Bhutan and Nepal, beer from these countries enters India without incurring import duties. This allows them to retail in Delhi at rates significantly lower than Indian-made beer, in some cases even below the MRP.
Meanwhile, domestic breweries continue to shoulder high excise duties, packaging costs, labeling requirements, and logistics expenses, pushing up their retail prices. This imbalance, they argue, is making it impossible to compete fairly.
All India Brewers Association Calls for Policy Action
The All India Brewers Association (AIBA) has urged the government to step in. In their appeal, they’ve recommended either levying duties on imported beer from Bhutan and Nepal or offering relief to Indian manufacturers.
“This is not about resisting imports,” an AIBA representative said. “Indian brewers are ensuring they are not penalized for operating in their own country under far stricter and costlier regulations.”
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Foreign Brands Gaining Shelf Space Rapidly
Imported beers like Druk from Bhutan and Nepal Ice have seen a sharp rise in shelf presence across Delhi’s retail outlets, bars, and liquor stores. Their affordability and wide availability are drawing customers away from Indian brands.
With Delhi being one of the largest beer markets in India, the stakes are high. Industry experts fear that if the current situation continues, it could lead to reduced investments, job losses, and a decline in local brewery innovation.
Is It Time to Rebalance the Rules?
While international trade agreements are designed to strengthen regional ties, Indian brewers argue that domestic industries should not suffer as a consequence. The call now is for a policy correction that supports local manufacturers without compromising diplomatic relationships.
