On Anti-Smuggling Day 2025, IPM India Wholesale Trading Private Limited, the Indian affiliate of Philip Morris International Inc. (PMI), reinforced its commitment to combating the illicit tobacco trade. The company emphasized the urgent need for cross-sector and international collaboration to safeguard India’s economic stability, national security, and public health. The FICCI Cascade report underscores the global impact of illegal trade, which contributes to a shadow economy worth $2 trillion annually, over 3% of global GDP. Approximately 11.6% of cigarettes consumed worldwide are illicit, leading to $40.5 billion in tax losses. In India, illicit tobacco trade cost the government ₹13,331 crore in 2022, with illegal cigarette volumes reaching 30.2 billion sticks, making India one of the most affected nations after China and Brazil, according to 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 span across borders, making this a global concern requiring coordinated international efforts. While Indian enforcement agencies, including the Directorate of Revenue Intelligence (DRI) and Customs, have increased crackdowns, illicit trade remains a persistent issue. The DRI report ‘Smuggling in India 2023-24’ states 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, reaffirmed the company’s commitment, stating, “The illicit tobacco trade is a serious threat to economic growth and security. At PMI, we are dedicated to eradicating illegal trade by strengthening our supply chain, collaborating with law enforcement, and increasing public awareness. Through technology and innovation, we are committed to ensuring product authenticity and securing our distribution networks.” IPM India emphasized that combating illicit trade requires a multifaceted approach, including stronger enforcement, public awareness initiatives, intelligence sharing, and robust public-private partnerships. A stable regulatory and fiscal environment is essential to dismantling black markets and protecting legitimate businesses.
