On Anti-Smuggling Day 2025, IPM India, the Indian affiliate of Philip Morris International Inc. (PMI), has called for stronger cross-sector and international partnerships to combat the black market tobacco trade. The company underscored that eliminating illicit trade is vital for protecting India’s economy, national security, and public health. The FICCI Cascade report highlights that the global illegal trade drives a shadow economy valued at $2 trillion annually, representing over 3% of global GDP. Additionally, 11.6% of cigarettes consumed worldwide are illicit, resulting in approximately $40.5 billion in tax losses. In India, government revenue losses due to illicit tobacco trade amounted to ₹13,331 crore in 2022, with illegal cigarette volumes reaching 30.2 billion sticks, ranking India among the most 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 market for illicit tobacco. Smuggling networks extend beyond borders, making it a transnational challenge that necessitates global cooperation. While Indian enforcement agencies, including the Directorate of Revenue Intelligence (DRI) and Customs, have intensified crackdowns, the illicit trade continues to thrive. The DRI report ‘Smuggling in India 2023-24’ reveals that approximately 91 million sticks of smuggled foreign-origin cigarettes, worth ₹179.82 crores, were seized in the country.
Navaneel Kar, Managing Director of IPM India, emphasized the need for immediate action, stating, “Illegal tobacco trade is a major economic and security threat. Protecting consumers from counterfeit products and preventing smuggling is critical. PMI remains committed to fighting illicit tobacco trade through research, supply chain protection, partnerships, law enforcement cooperation, and awareness campaigns.” Industry experts stress that a comprehensive approach is essential, integrating stricter enforcement, public awareness campaigns, intelligence sharing, and robust public-private collaborations. A predictable regulatory and fiscal environment is key to dismantling the black market and securing legitimate business interests.
