In earlier years the policy of the Indian government was to discourage the consumption of alcoholic beverages. This even went so far as to involve total prohibition in some states. However, the resulting problems of illicit distillation, the leakage of government excise revenue and the problems involved in enforcement, led to a review of this policy. The importation of potable alcohol is subject to government licensing. Alcoholic drinks carry a very heavy tax burden which is itself a major source of revenue for state governments.
IMFL production includes wines, whisky, rum, vodka, gin and brandy.
Draught beer has been recently introduced and has done well in the places in which it has been introduced. Canned beer is an even more recently introduced new beverage. Production of Alcohol drinks from non-molasses sources is very small in the country compared to the total production of Alcoholic drinks. Efforts have been made to ensure that data is accurate.