New Delhi, February 11, 2025: On Anti-Smuggling Day 2025, Philip Morris International Inc.’s (PMI) India affiliate, IPM India calls for cross-sector, international collaboration to eradicate black market tobacco trade, fundamental for safeguarding India’s economic interests, national security and public health.
As per the FICCI Cascade report, the illegal trade is a global crisis, fuelling a shadow economy estimated at $2 trillion annually equivalent to over 3% of global GDP. Approximately, 11.6% of the global cigarettes consumed are illicit, which impacts governments across the globe to the tune of $40.5 billion in tax losses. The illicit trade undermines legitimate businesses, deprives governments of crucial revenue, funds criminal organizations, and exposes consumers to unregulated products.
As per the media reports, the FICCI Cascade report suggests that the total loss to the Government of India on account of illicit tobacco trade was ₹13,331 crore in 2022. Illicit cigarette volumes in India reached 30.2 billion sticks in 2022, trailing only behind 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 for fake and smuggled products exist worldwide, making this issue not merely a domestic but a transnational problem that demands a transnational solution.
The Government of India and enforcement authorities like Directorate of Revenue Intelligence (DRI) and Customs have made commendable efforts to mitigate the issue. As per The DRI report, ‘Smuggling in India 2023-24’, the seizures of foreign origin illegally smuggled cigarettes into India via sea, air and land borders stood at approx. 91 million sticks valued at approx. INR 179.82 crores. These operations also highlight the complexity of the issue, often involving sophisticated smuggling techniques and transnational criminal networks.
Commenting on the urgent need to curb black market, Navaneel Kar, Managing Director, IPM India, said, “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 five critical areas- research & intelligence, protecting supply chain, partnerships, cooperation with law enforcement and raising awareness. In India, we have contributed significantly, partnering with law enforcement agencies in the fight against the trade of illegal cigarettes. Our efforts are concentrated on securing our supply chain and protecting our products via technology and innovation: from multiple applications of authentication and security technologies to track and trace our products across the supply chain. It is crucial to eliminate illicit tobacco trade and only through cross sectoral collaboration, partnerships and stringent law enforcement, we can achieve real change.”
A multifaceted approach involving strong law enforcement with awareness and education campaigns about the real-life impact of illicit tobacco trade, sharing intelligence on transnational networks, a predictable fiscal and regulatory environment and public-private partnerships is pivotal to dismantling black markets.
