Dry States: Prohibition in India

How Gujarat, Bihar, Mizoram and Nagaland have tried prohibition, what it costs in lost revenue, and evidence on its effects.

Some Indian states ban alcohol entirely.

Dry states

Gujarat: prohibition since the state’s formation in 1960, rooted in Gandhian values.
Bihar: total prohibition since April 2016.
Nagaland: dry since 1989.
Mizoram: prohibition reimposed in 2019.
Kerala and Haryana tried partial or full bans earlier, then reversed them.

Arguments for

Reducing domestic violence and household spending on alcohol.
Women’s support, especially in Bihar.
Health benefits.

Evidence

Some studies of Bihar found reductions in certain crimes against women and increased spending on household goods after 2016.
Other evidence shows illicit liquor trade and arrests surged.

Costs

Lost revenue: Bihar gave up thousands of crores a year in excise.
Enforcement costs and overcrowded prisons from prohibition arrests.
Black markets and corruption.
Tourism losses.

Exceptions

Gujarat allows permits for health reasons and for visitors, and in 2023 eased rules in GIFT City.

The Bihar household

After prohibition, a family in Bihar that spent part of its income on liquor now spends more on food and schooling, though illicit liquor remains available nearby.

Thinking prohibition eliminates drinking

It reduces legal sales but often creates black markets.

Key takeaways

Gujarat, Bihar, Nagaland and Mizoram have prohibition.
Bihar's ban since 2016 had some social benefits.
Lost revenue, enforcement costs and black markets are downsides.
Some states reversed earlier bans.