Analyzing the Indian Tobacco Sector: Pre-Pandemic and Immediate After-Pandemic Perspectives.

Published: 14 June 2024| Version 1 | DOI: 10.17632/3vdwrct5r3.1
Ranjit Singha,


India ranks second in the world for tobacco consumption. During 2019-2020, cigarette consumption increased, and the illegal cigarette trade surged during the pandemic. The tobacco industry has significantly contributed to India's economy, and during the lockdown, the price of ten cigarettes soared to 300 INR and beyond.Since 1975, it has been a legal requirement to display a statutory warning that smoking is injurious to health. The government introduced new regulations mandating that tobacco products display written messages and pictographic representations indicating that smoking or consuming tobacco causes cancer. Despite these warnings, the tobacco industry thrives in India, where the tobacco leaf is referred to as the "golden leaf." Smoking is harmful to health, causes cancer, and weakens the immune system, making individuals more susceptible to pandemic and other infections. Despite these risks, tobacco has not been banned.The tobacco business has been booming for years. The pandemic-induced price hikes have led to a surge in smuggling, with tax-evaded cigarettes now comprising as much as one-fourth of India's cigarette industry. The possibility of a new COVID-19 strain causing another lockdown raises concerns about future smuggling activities. Based on current smuggling data, it is evident that opportunistic businesses are likely preparing inventories for any potential upcoming lockdown.



Business, Economics, Commerce