The President of India has notified the Lakshadweep Excise Regulation, 2026, establishing a comprehensive legal framework for the manufacture, import, export, transport, sale, purchase, possession, and consumption of liquor in the Union Territory.
The move marks a significant shift in Lakshadweep’s alcohol policy, which had remained heavily restricted for decades. The new regulation introduces a licensing and permit system for businesses and individuals while also prescribing penalties for violations and unlawful trade.

Officials believe the framework will help regulate the sector more effectively and support tourism-related economic activity. The policy change comes amid broader efforts to make Lakshadweep more accessible to tourists through simplified entry permit procedures.
However, the decision has drawn criticism from some residents and elected representatives. Concerns have been raised about potential social impacts and the effect on the islands’ traditional way of life. Earlier this year, Lakshadweep’s Member of Parliament had urged the administration to reconsider expanding liquor availability in parts of the archipelago.
The development is likely to remain a subject of discussion as authorities balance tourism growth, economic interests, and local sensitivities across the island chain.
