On the occasion of Anti-Smuggling Day 2025, IPM India, the India affiliate of Philip Morris International Inc. (PMI), has urged for cross-sector and international cooperation to eliminate the black market tobacco trade. The company emphasized that addressing illicit trade is crucial for safeguarding India’s economy, national security, and public health. According to the FICCI Cascade report, the illegal trade fuels a global shadow economy worth $2 trillion annually, accounting for over 3% of the global GDP. The report also reveals that 11.6% of cigarettes consumed worldwide are illicit, leading to an estimated $40.5 billion in tax losses. In India, the total loss to the government due to illicit tobacco trade stood at ₹13,331 crore in 2022, with illegal cigarette volumes reaching 30.2 billion sticks, making India one of the worst affected nations after China and Brazil, as per Euromonitor International’s 2023 report.
The World Health Organisation (WHO) Framework Convention on Tobacco Control identifies India as both a transit hub and a key destination for illicit tobacco trade. Smuggling routes span across international borders, making it a transnational issue that requires a coordinated global response. Despite strong enforcement efforts by Indian agencies like the Directorate of Revenue Intelligence (DRI) and Customs, the illicit trade remains a significant challenge. The DRI report ‘Smuggling in India 2023-24’ highlighted that approximately 91 million sticks of illegally smuggled foreign-origin cigarettes, worth ₹179.82 crores, were seized in the country.
Navaneel Kar, Managing Director of IPM India, stressed the urgency of addressing the black market, stating, “Illegal tobacco trade is a serious threat, stifling economic growth & development. It’s paramount to protect consumers from fakes and prevent the smuggling and counterfeiting of products. PMI has been at the forefront of the fight against illegal tobacco trade. Our strategy revolves around research & intelligence, protecting supply chains, partnerships, cooperation with law enforcement, and raising awareness.” Local traders face challenges due to unregulated competition, affecting legal sales and government revenue. Authorities in Mizoram have been intensifying surveillance at border checkpoints to curb the influx of illegal tobacco products. Experts emphasize that a multifaceted approach is required, including stricter law enforcement, awareness campaigns, intelligence sharing on transnational networks, and robust public-private partnerships. A predictable fiscal and regulatory environment is also key to dismantling black markets effectively.
