Lakshadweep will allow regulated liquor sales across the archipelago under a new excise framework introduced by the Union government as part of efforts to boost tourism in the island territory.
The Centre has notified the Lakshadweep Excise Regulation, 2026, replacing the nearly 47-year-old Lakshadweep Prohibition Regulation, 1979.
The new law introduces a licensing system for the import, transport, sale, purchase, and consumption of alcohol.
Under the regulation, government-owned agencies can obtain licences to import and retail alcoholic beverages.
The new rules require licence applicants to be Indian citizens aged 18 years or above. Liquor outlets must be located at least 50 metres away from schools, hospitals, orphanages, and places of worship. The sale of alcohol to persons below 21 years of age is prohibited, and minors cannot be employed in liquor-related businesses.
The excise structure includes a 400 per cent duty on Indian Made Foreign Liquor and imported liquor, 200 per cent on beer, and 80 per cent on wine.
The move is part of a broader strategy to develop Lakshadweep as a major beach and marine tourism destination. The administration has also eased visitor permit procedures in an effort to improve accessibility and attract more domestic and international tourists.
Officials hope that better connectivity, simplified travel processes, and upgraded tourism infrastructure will increase tourist arrivals to the islands.
Lakshadweep, located in the Arabian Sea about 220 to 440 kilometres off the Kerala coast, comprises 36 coral islands known for their lagoons, white-sand beaches, and coral reefs.
Popular tourist destinations in the archipelago include Agatti Island, which houses Lakshadweep's only operational airport, Bangaram Island, Minicoy Island, Kadmat Island, and Kavaratti, the capital island.
The best time to visit Lakshadweep is generally between October and April, when weather conditions are favourable for tourism and water-based activities.
The islands can be reached by air through Agatti Airport, which is connected to Kochi, or by passenger ships operating from Kochi to selected islands.