Philip Morris India Reinforces its Commitment Against Illicit Tobacco Trade with Intelligence-Led Action and Strategic Partnerships in 2025

Illicit tobacco trade is a growing threat to India’s economy and public health. In response, Philip Morris India Trading Private Limited (PM India) has intensified efforts to tackle this challenge by combining intelligence-driven action and strategic policy engagement. 

The organisation leveraged market intelligence to map contraband hotspots and assess the penetration of illicit cigarettes while catalysing industry–government dialogue on transparency, enforcement, and global best practices. These efforts underscore PM India’s commitment to safeguarding supply chain integrity and supporting national priorities in curbing the inflow of illegal cigarettes.

Euromonitor International reports that sales of illicit cigarettes remain high in India, driven by affordability compared to legal cigarettes. These products evade taxation, while the legal industry struggles under the burden of high tax rates. Based on estimates, Euromonitor International ranks India as the fourth-largest market for illicit cigarette consumption globally, after China, Brazil and Pakistan. 

Recent public reports suggest enforcement agencies have estimated seizures of smuggled cigarettes worth ₹600 crore during FY'25, reflecting the growing scale of illicit tobacco trade. 

Additionally, Directorate of Revenue Intelligence data has highlighted the Northeastern region as the largest epicentre of cigarette smuggling, accounting for one-third of total seizures due to porous borders, with Maharashtra-Goa (20%), Tamil Nadu (13%), and West Bengal (9%) highlighting the growing use of coastal and maritime routes for such smuggling.

As the Government of India (GoI) strengthens the enforcement machinery through the rollout of the track & trace mechanism, PM Modi stands committed to supporting this landmark reform by sharing global best practices and proven expertise. 

With operations across multiple markets globally, Philip Morris International (PMI) has voluntarily implemented advanced Track & Trace systems in 140+ markets worldwide. In regions like the EU, UK, Russia, Jordan, and GCC, every pack is digitally tagged and monitored, supported by scalable, locally adapted frameworks built in collaboration with national authorities. 

Additionally, PMI has consistently invested in technologies that protect supply chain integrity, delivering better visibility, stronger compliance, and measurable reductions in illicit trade.

Navaneel Kar, Managing Director, Philip Morris India, said, “Illicit tobacco trade is not a new challenge, and neither is our commitment to addressing it. Our endeavour in India combines global expertise with local partnerships to strengthen enforcement, protect consumers, and support national priorities. 

This year, we engaged with over 50 key stakeholders from the Ministry of Finance, Ministry of Commerce & Industry, DRI, GST, Police, and Customs—deepening collaboration through market intelligence, advanced track-and-trace systems, and collaborative frameworks to curb the inflow of illicit cigarettes. Combating this issue requires sustained, collective action, and we remain committed to working in collaboration with regulators, enforcement bodies, and civil society to build a transparent and compliant tobacco ecosystem for India.”

With its global expertise and local commitment, the organisation champions innovation and collaboration to combat illicit tobacco trade in India. By combining technology-driven solutions with strategic partnerships and enforcement support, PMI remains focused on building a transparent, compliant, and secure tobacco ecosystem that protects consumers and strengthens national interests. 

Looking ahead, PM India remains committed to supporting government reforms, accelerating innovation in compliance and partnering with stakeholders to co-create future-ready frameworks that strengthen transparency across the entire supply chain

About Philip Morris India Trading Private Limited

Philip Morris India Trading Private Limited (formerly IPM India Wholesale Trading Private Limited) is a joint venture between Philip Morris Brands SARL of Switzerland and two Indian entities, Godfrey Phillips India Limited and K.K. Modi Investment & Financial Services Private Limited.