Impact Of Liquor Ban On Bihar's Economy: Gains And Challenges

Abstract

The article titled "Impact of Liquor Ban on Bihar's Economy: Gains and Challenges" examines the multifaceted consequences of the prohibition of alcohol in Bihar, India, which was implemented in April 2016. The ban, enacted to curb social issues like domestic violence and public health concerns, has had a significant impact on the state's economy and society. On the one hand, the ban led to a reduction in alcohol-related crimes and an improvement in public health metrics, which are seen as major social gains. However, the economic ramifications have been complex. The state experienced a substantial loss in revenue, with the liquor industry being a major contributor to the state’s coffers before the ban. Additionally, the illicit trade of alcohol and smuggling activities surged, leading to challenges in law enforcement and governance. The article explores the balance between these social gains and economic challenges, evaluating the broader implications of the ban on Bihar's economic stability and social fabric up to the year 2020. The analysis also considers the effectiveness of the policy and the unintended consequences that have emerged in the aftermath of the prohibition.