Key facts
- Philip Morris India is advocating for stronger enforcement and collaboration to disrupt the illicit tobacco ecosystem.
- Illicit cigarettes constitute nearly 25% of the Indian market, causing an estimated annual revenue loss of Rs. 23,000 crores.
- The illicit tobacco market, including e-cigarettes and vapes, is a growing global challenge with significant revenue implications.
- Recent enforcement actions in India have led to substantial seizures of illicit e-cigarettes and cigarettes.
- Philip Morris India emphasizes the need for intelligence-led interventions and robust supply chain transparency systems.
Philip Morris India (PM India) has called for increased enforcement and collaboration to combat the illicit tobacco trade, a growing global challenge that significantly impacts government revenues and consumer safety. On World Anti Counterfeiting Day, the company highlighted that illicit cigarettes constitute nearly a quarter of the Indian market, leading to estimated annual losses of Rs. 23,000 crores. The issue extends beyond traditional cigarettes to include banned products like e-cigarettes and vapes, which often bypass regulatory scrutiny.
Reports indicate a substantial illicit tobacco market across Southeast Asia, with the ASEAN-6 generating an estimated US$12.6 billion in revenue over the past two years. Illicit cigarette sales grew by 14% and illicit e-vape sales by 24% in the past year alone. The illicit e-cigarette market was valued at USD 47 billion in 2024, accounting for over 70% of global spending and approximately three-quarters of total volume.
Recent enforcement actions in India underscore the scale of the problem. In May 2026, the Directorate of Revenue Intelligence (DRI) seized 3,00,000 electronic cigarettes/vapes worth Rs. 120 crore across multiple states. Additionally, seizures of illicit cigarettes have been reported in various Indian cities, reflecting the widespread nature of the black market.
Navaneel Kar, Managing Director of PM India, emphasized that the illicit tobacco trade has evolved into a complex ecosystem of smuggled, banned, and unregulated products. He stressed the necessity for stronger collaboration between industry and enforcement agencies, supported by robust systems like track-and-trace to enhance supply chain transparency. PM India is committed to leveraging its global experience and local partnerships to aid authorities in strengthening compliance and safeguarding legitimate trade.