Headquartered in London, multinational alcoholic beverages company Diageo PLC is trying to win over dozens of local and state governments in India that want to either ban liquor or tax it heavily, even as consumption is soaring. To protect and improve sales, Diageo is helping a number of Indian states develop tax policy. Alcohol is one of the few industries that states have been able to tax directly since 2017, prompting states to raise taxes on booze to generate revenue and discourage consumption.
To demonstrate that it is a responsible actor, Diageo is funding programs endorsed by the transport ministry that it says are designed to improve road safety and encourage responsible drinking. The ministry is relying on Diageo to educate university students applying for driver’s licenses about the dangers of speeding, not wearing helmets and driving drunk.
Additionally, Diageo is presenting ways that states can move up India’s ease-of-doing-business rankings — which are important for attracting investment — by cutting red tape for alcohol.
Last updated: December 26th, 2025
