Puducherry is famous for its cheap ______, since the taxes on it are very low.

Solution (By Examveda Team)

Puducherry is famous for its cheap liquor because the Union Territory imposes very low excise duty and taxes on alcoholic beverages compared to most other states in India.

This pricing difference has made Puducherry a popular destination for tourists and travelers from neighboring states like Tamil Nadu and Andhra Pradesh, where liquor is more expensive. The lower cost is often due to the Union Territory's revenue strategies, which rely significantly on the sale of alcohol.

Due to these economic policies, liquor is widely available and relatively inexpensive in Puducherry, contributing to its reputation as a budget-friendly destination for alcohol purchases.

Other options like Fish and Hotels may also be available at reasonable prices in Puducherry, but they are not specifically known for being cheaper due to low tax policies. Hence, they are not the correct answer in this context.

Therefore, the correct answer is Liquor, due to Puducherry’s low tax rates on alcoholic products.