Opening the Beer Gates: How Liberalization Caused Growth in India's Beer Market
The Indian beer market has been growing at a staggering rate of 11% annually between 1999 and 2009. This chapter looks at the determinants of this impressive growth. Rules and regulations in the Indian beverage sector, in an attempt to serve multiple purposes, have become quite complex, including licenses, trade and marketing restrictions, and price controls. However, the regulatory system has been relaxed in recent years, contributing to increased inflows of foreign direct investment, higher growth rates and modernization of the sector — with important impacts on quality standards and supply chain governance structures. The chapter traces these policy changes and their influence on the beer market in India.
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