Illicit Tobacco: ₹1.3 Lakh Crore Annual Blow to India
India’s economy suffers a staggering annual loss of approximately ₹1.3 Lakh Crore (approximately $1.65 billion) due to the illicit tobacco trade. This represents a significant drain on national resources.
A quarter of the domestic tobacco market is estimated to be controlled by illegal operations. This undermines legitimate businesses and costs thousands of jobs.
The illicit trade costs India an estimated 12,000 jobs annually, further impacting employment and economic growth. The problem is not unique to India.
Globally, the illicit tobacco trade siphons off an estimated $40-50 billion annually. This equates to around 500 billion cigarettes, or 14-15% of global consumption.
The scale of this illegal activity highlights the urgent need for stronger regulatory measures and increased enforcement to curb this pervasive problem. The government must act decisively to protect both the economy and public health. The loss of revenue directly impacts crucial social programs and development initiatives.
