Pmi In India Calls For Cross-sector, International Collaboration To Eradicate Black Market, This Anti-smuggling Day

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 Indias 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 Internationals 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. ? 179.82 crores . These operations also highlight the complexity of the issue, often involving sophisticated smuggling techniques and transnational criminal networks.