After years of consistent expansion, the growth of liquor health permits in Gujarat has hit a significant slowdown, according to the latest state government data. The number of active permit holders has nearly plateaued, marking a stark contrast to the rapid increases seen earlier this decade.
A Sharp Decline in Growth Rate
The data reveals a dramatic deceleration. In 2025, the total number of permits grew to just 45,500 from 45,000 in 2024, a mere increase of 1%. This is a far cry from the explosive growth witnessed between 2020 and 2021, when permits surged from 27,452 to 37,421. The issuance of new permits and renewals has become much slower compared to the single-digit growth rates observed in 2022 and 2023.
Industry insiders and permit liquor store owners point to a confluence of reasons for this trend, including changes in government policy, administrative hurdles, and evolving consumer habits.
Key Factors Behind the Stagnation
Narendra Somani, President of the Hotels and Restaurants' Association (HRA) Gujarat, highlighted the direct business impact. "Health permit-linked footfall at liquor stores has clearly softened," he stated. While new hotels in cities like Ahmedabad led to a rise in liquor stores, stagnant permit numbers mean individual outlets are facing stagnant demand, with some even incurring losses. Stores reliant on renewals are particularly affected.
A major disruptor has been the relaxation of liquor consumption rules within GIFT City. Employees and official visitors to the financial hub, who previously needed health permits, now have little reason to maintain them if their consumption is confined to the GIFT zone. This shift has directly reduced the volume of repeat and renewal applications.
Administrative bottlenecks are another critical factor. There is rising pendency at the civil hospital, a mandatory clearance point for health permits. "Several districts are reporting slower approvals and renewals, particularly following the appointment of new medical superintendents who are adhering strictly to protocols," explained an industry source familiar with the process.
Changing Behavior and Regional Shifts
Hoteliers also note a behavioral shift among migrant professionals and corporate travelers. With business trips becoming more frequent but shorter, applicants are increasingly opting for temporary visitor permits, which can be issued weekly. This trend has reduced applications for the longer-term health permits, further softening net additions to the active pool.
District-level data underscores this change. While Ahmedabad continues to lead with 14,700 permit holders in 2025, traditional commercial hubs like Surat and Rajkot have seen a steady decline in permit numbers over the last two years.
The plateau in Gujarat's liquor health permits signals a new phase, influenced by targeted policy exemptions, stricter administrative oversight, and the evolving patterns of a modern workforce. The coming years will reveal whether this marks a permanent shift or a temporary lull in the state's regulated alcohol consumption framework.
