Indians are expected to consume nearly three times more liquor in the coming three years, according to a study conducted by a chamber lobby Assocham.

According to the study, liquor consumption is expected to treble to 20 billion liters in three years, against 7 billion liters at present.

Liquor sales in second class and third class cities are expected to grow sharply as companies focus on retail channels such as bars, restaurants and pub joints across these towns.

Huge investments are being made to improve infrastructure, supply chain and bottling facilities in these places. This would also open new employment avenues, said the study.

Moreover, to attract the young crowd, "dance bars" where young women are scantily dressed while dancing to popular songs are mushrooming in most cities in India.

The sales of imported spirits, including the duty-free travel trade in India, is likely to cross five million liters mark and reach about 55 million liters by 2015.

The imported spirits market in India is at present estimated at about 28 million litres and about 3.1 million cases.

Market for imported liquor will witness an increase in foreign brands if the stiff regulatory environment together with state levies and high import duties on imported spirits are relaxed, said the study.

Sales of imported liquor are rising rapidly, despite threat from counterfeit spirits. Wine consumption in India may touch 14.7 million liters by the end of this year from 4.6 million liters in 2008, said the study.

The wine market is likely to increase by four times by the end of this year.

The chamber lobby noted that the vodka market in India is growing at about 25 percent annually and is likely to reach about 10.2 million cases by this year end as vodka is emerging as a starting drink of choice for the youth at metros and second class cities.