As the world’s gaze turns to Asia’s flourishing bar scene, India is emerging as a long-dormant giant finally stirring to life. The journey has been far from effortless – hospitality in India is among the most complex industries to navigate – but it is precisely these challenges that are fuelling a new wave of creativity, resilience and opportunity.

A country of 1.4 billion-plus people, a complicated relationship with alcohol, 28 laws governing 28 states, eight union territories, language barriers, religious sentiments, and a rising middle class – India is a petri dish in more ways than one.

But what is the “Indian bar scene” that everyone seems to be referring to? The term itself feels like a bit of a catch-all phrase that tries to make sense of the growing number of cocktail bars making an appearance on global lists. But India’s bar scene is a rapidly developing story – ignited by passionate barkeeps and guests, yet fragmented and fractured only by the laws that govern it.

Product

Bars in India come in every form imaginable, shaped as much by who drinks in them as by what they serve. There are taverns and “standing bars” for daily wage earners, dive bars that attract edgy creatives, microbreweries bustling with Bengaluru’s tech professionals, and intimate cocktail bars designed for urban explorers with deeper pockets. At the higher end especially, venues have mastered the art of knowing their guest – delivering concepts that are watertight, meticulously executed and capable of inspiring lifelong loyalty. Yet, even the most finely tuned bar is not immune to forces beyond design and hospitality – the real test often lies in navigating the maze of legislation and excise policies that govern the industry.

Legislation

India is neither unified by policy, nor by language (and least of all by butter chicken). With 121 languages and 1,000+ dialects, India’s diversity is not just a buzzword. It’s a reality that poses as many challenges as it inspires stories. Every single state and union territory is governed by different excise policies and, much like the US, imports come under state-wise duties and taxation policies.

According to Jairaj Solanki, co-founder of Lair (Gurugram and New Delhi): “Setting up things in Gurugram is actually a bit easier compared to its big brother, New Delhi. While Delhi has moved everything online and made it super-digital, Gurugram still prefers the good old pen and paper route. Surprisingly, that makes the process quicker and involves fewer licenses, which is definitely a plus.” However, admin and paperwork are not the only issue that plagues the bars of Delhi and Gurugram – it is the constant uncertainty around the excise policy. “It changes almost every year, and as a bar or restaurant owner, you’re kind of left in the dark until the new rules drop. We just have to stay flexible and adapt as things come our way,” says Solanki.

Prices of goods vary widely from state to state and severely impact the price of drinks, dictating consumption to a certain degree. A bottle of premium imported tequila can cost £68 in Bengaluru, £60 in Goa and £78 in Mumbai. Campari retails at £22 in Mumbai, £30 in Bengaluru and £20 in Goa. Co-founder of Bengaluru’s Soka, Avinash Kapoli sees this as one of the key issues to navigate. “Bengaluru consumers are value driven, which means we can’t price drinks beyond £9 or £10, unlike Bombay or Delhi where the tendency to splurge is more.”

Appetite

India’s middle class – estimated as 31% of households – is steadily on the rise, fuelled by higher disposable incomes and aspirational consumption. By 2030, this segment is projected to account for nearly 44% of households, reshaping demand and redefining the country’s idea of modern luxury. So where do bars fit into this story given India’s relationship with religion and the customs governing it? A massive misconception about India is how its people consume alcohol. Even as India’s bar culture flourishes, Gujarat, Bihar and Nagaland remain officially dry – reminders of how Prohibition laws coexist uneasily with the country’s rising tide of aspirational drinking.

In most other states, drinking habits mirror those of many developing economies. White-collar professionals, affluent travellers and foreign nationals in India fuel the steady rise of cocktail bars across the metros – though they don’t always determine what’s poured into the glass. Pankaj Balachandran, co-founder of Boilermaker (Goa), says: “We studied our market closely before launching to understand what our guests wanted. Since then, we’ve kept the menu straightforward – feedback is measured against sales, and we only adjust if truly necessary. To keep things fresh for our regulars, we refresh the menu every six months.”

Talent

Hiring talent for bars in India is akin to a game of Tetris, with attrition being the biggest challenge. Hospitality is not a unionised profession and, in many ways, remains an unregulated industry when it comes to protecting the interests of the workforce. Loosely structured labour laws sit at the heart of the problem making hospitality a slightly unattractive proposition for many. To compound the issue, there are added layers of complexity stemming from a lack of awareness about potential growth and the possibility of a respectable future in hospitality for the highly qualified, who prefer to explore more stable careers.

Yash Bhanage, co-founder of The Bombay Canteen, says: “In India, money is often seen as the obvious challenge, but it’s not the whole story. The deeper issue is that hospitality is still not viewed as a long-term career path. Many young people join bars and restaurants as a stop gap rather than a profession they can grow in. Without strong structures for training, growth and dignity of work, retention becomes difficult no matter the salary. The opportunity in India’s bar scene is to change that mindset and create real careers, not just jobs.”

Bureaucracy, red tape, talent drain, shifting tastes – India’s hospitality industry faces no shortage of hurdles. Yet it is precisely within these tussles that its most exciting possibilities lie. With a young, ambitious consumer base and a growing appetite for global and local flavours alike, India stands not just as an emerging market for F&B, but as a stage where the next chapter of the world’s bar culture is being written.