In India, several states and one union territory have implemented strict alcohol prohibition laws, classifying them as "dry states." These measures aim to address social, cultural, and health concerns, but they also have significant economic implications.

List of Dry States in India

1. Gujarat: Enforcing a complete ban on alcohol since 1960, Gujarat has a population of approximately 60 million. Despite the prohibition, around 20% of the population reportedly consumes alcohol illegally.

2. Bihar: In 2016, Bihar implemented total prohibition on alcohol sales. The state faced an estimated revenue loss of ₹4,000 crores (approximately $540 million) due to the ban. Prior to prohibition, about 60% of households consumed alcohol.

3. Mizoram: Mizoram enacted the Mizoram Liquor (Prohibition) Bill in 2019. Before this law, it was estimated that about 40% of adults regularly consumed alcohol. Since the ban, illegal liquor trade has reportedly increased.

4. Nagaland: Nagaland has enforced the Nagaland Liquor Total Prohibition Act since 1989. Reports indicate that nearly 50% of adults consumed alcohol before the ban, leading to challenges with illegal sales.

5. Lakshadweep: This Union Territory has a total ban on alcohol sales except for limited consumption on Bangaram Island. The local population is around 68,000, and the prohibition aims to maintain cultural integrity and public health.

While these prohibitions aim to promote healthier lifestyles, they lead to significant economic consequences:

1. Loss of Tax Revenue: States like Gujarat and Bihar miss out on substantial tax income from alcohol sales. Bihar's estimated loss of ₹4,000 crores could have funded critical public services such as education and healthcare.

2. Job Losses: The closure of bars and breweries leads to unemployment; in Bihar alone, over 10,000 jobs were lost in the hospitality sector following prohibition.

3. Rise of Illegal Markets: Prohibition often drives consumers to illegal sources for alcohol; in Bihar, illegal liquor consumption surged by approximately 30% after the ban.

4. Impact on Related Industries: Restaurants that relied on alcohol sales struggle to survive without this revenue stream; many establishments in Gujarat reported a decline in overall revenue by up to 25% post-prohibition.

The existence of dry states in India highlights a complex interplay between cultural values and economic realities. While aimed at reducing alcohol-related issues, these prohibitions often create new challenges that hinder economic growth and community well-being.