The Delhi government has approved a new excise policy that lowers the minimum legal age for alcohol consumption from 25 years to 21 years. This change aligns Delhi with most Indian states where the legal drinking age is 21, although some states have it as low as 18 and others as high as 25. Additionally, certain states prohibit alcohol consumption altogether.

What is the most likely consequence of the new excise policy approved by the Delhi government?

Question

The Delhi government has approved a new excise policy that lowers the minimum legal age for alcohol consumption from 25 years to 21 years. This change aligns Delhi with most Indian states where the legal drinking age is 21, although some states have it as low as 18 and others as high as 25. Additionally, certain states prohibit alcohol consumption altogether.

What is the most likely consequence of the new excise policy approved by the Delhi government?

Accepted Answer

**Solution:**

1. The Delhi government's decision to reduce the legal drinking age from 25 to 21 is likely to increase the number of legal consumers of alcohol.

2. With more people legally allowed to purchase alcohol, the demand for alcoholic beverages is expected to rise.

3. This increase in demand will likely result in higher excise revenue for the Delhi government compared to the previous policy.

4. While opposition or other states' reactions are possible, the most direct and immediate consequence is the potential increase in government revenue.

5. Opening new liquor shops or advertising alcohol publicly are not guaranteed outcomes based on the information provided.

**Answer:** (a) More revenue will be generated for Delhi Government as compared to earlier.

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