The liquor industry has welcomed the Delhi government's new excise policy, saying it is "progressive" and in line with current times and existing reality.
The new policy would improve consumers' purchase experience like upgrading of retail shops, as well as steps to improve ease of doing business, it said.
On Monday, the Delhi government approved a new excise policy that had lowered the legal drinking age to 21 from 25 years. It had also withdrawn the government from running liquor vends in Delhi. According to the government, the movie is expected to lead to annual revenue growth of 20 per cent.
Diageo India, which owns United Spirits Ltd, said the new excise policy is progressive.
"We welcome the many consumer-friendly measures including bringing the legal drinking age in Delhi at par with neighbouring states, the introduction of 'age-gating' at restaurant and bars, equitable geographic spread of retail outlets in the state and 100 per cent private retail," Diageo India Managing Director and Chief Executive Officer Anand Kripalu said.
The government's mission to tackle the scourge of the illicit liquor trade will ensure the safety of citizens while minimising revenue losses of the government, he added.
Homegrown IMFL manufacturer Radico Khaitan said the Delhi government's decision to lower the legal drinking age is now on par with most of the Indian states.
"The drinking age in the neighbouring state of Uttar Pradesh is 21 years, young adults would often purchase liquor from neighbouring cities such as Noida and Ghaziabad which would divert the revenue. Now, this revenue will remain in Delhi," the company said.
Moreover, with the establishment of many more premium liquor shops, it will also be more convenient for women consumers to purchase as many are generally reluctant to go to the regular retail shops, it added.
The Confederation of Indian Alcoholic Beverage Companies (CIABC), which represents the domestic liquor makers, said it "wholeheartedly welcomes" all steps that bring the excise policy in line with current times and existing reality which includes reducing the drinking age.
"It also welcomes all measures that improve consumers' purchase experience like upgrading of retail shops, as well as steps to improve ease of doing business. So far we have got the broad framework only and are waiting for details but we believe that if the same thought underpins the policy details, all stakeholders will have reason to raise a toast to this transformative move," CIABC Director-General Vinod Giri said.
All India Brewers' Association (AIBA) said it was a "good policy" and was recommending the government to take such steps for years.
"This is a very clear policy and we as an industry support it," AIBA Director-General Shobhan Roy said.
AIBA represents 83 manufacturing breweries, including United Breweries, Carlsberg, Bira, and Molson & Coors.