Heavy alcohol consumption imposes an estimated annual social cost of ₹51,000 crore on Karnataka, according to the state’s excise reforms report prepared by the Resource Mobilisation Committee.
The report, released by the government, highlights the growing economic and social burden linked to harmful drinking even as Karnataka remains one of India’s biggest alcohol markets.
Consumption above national average
Using data from the National Family Health Survey 2021, the report states Karnataka ranks seventh among India’s highest alcohol-consuming states.
Per capita alcohol consumption in Karnataka stands at 9.1 litres annually, higher than the national average of 6.4 litres.
While only 8.6 per cent of people above 15 years reportedly consume alcohol, the report says a smaller group of heavy drinkers causes disproportionate damage.
Impact on families and society
The committee estimated alcohol-related harm costs Karnataka between 1.4 per cent and 2.6 per cent of Gross State Domestic Product.
These include domestic violence, family distress, drunk-driving accidents, healthcare pressure from liver disease, and financial hardship among low-income families.
The report noted that in many vulnerable households, spending on alcohol diverts money away from food, healthcare and children’s education.
Karnataka major liquor market
Despite concerns, Karnataka sold 6.8 crore cases of Indian-made foreign liquor during 2024-25, accounting for nearly 17 per cent of total IMFL sales in India.
This places the state among the country’s most significant alcohol markets in both consumption and government revenue.
Strong gender divide
The report found 16.5 per cent of men aged 15 to 49 consume alcohol, compared with only 0.9 per cent of women.
However, women and children often bear the larger social consequences through financial stress, instability and domestic violence.
Policy debate grows
The findings are expected to intensify discussions over balancing excise revenue with public welfare and long-term health costs