- Stopping illegal tobacco trade could help contain the informal tobacco economy, secure product integrity, and ensure a better livelihood for tobacco farmers
- The move would align with India's stature as the 4th largest economy in the world and a leader of the Global South
NEW DELHI, July 2, 2025 /PRNewswire/ -- Philip Morris International Inc.'s (PMI) India affiliate, IPM India, pledged its steadfast commitment to breaking the illicit tobacco nexus on World Anti-Counterfeiting Day in a three-fold pursuit to protect revenue loss, combat the informal economy and safeguard product integrity. Aligned with India's recent landmark decision to roll out pack-level Track and Trace (T&T), PMI's commitment beckons a more collaborative future to bolster regulatory enforcement and combat counterfeit tobacco products in a comprehensive manner.
As the Government of India (GoI) strengthens the enforcement machinery, enabling regulatory authorities better by helping them distinguish counterfeit, illegal products from legal ones, it is imperative to look at the overall ramifications of the illegal tobacco trade ecosystem as well. Based on Euromonitor and WHO statistics, cigarettes continue to be one of the most common illegally traded goods in the world, with as much as 14-15% of total cigarette sales (excluding China and U.S.) sourced from the black market according to PMI estimates. With an estimated 120 million tobacco users in India, India is the fourth largest and fastest growing illegal cigarette capital in the world with smuggled cigarettes accounting for a quarter of the domestic cigarette industry.
Emphasizing on the need for strengthening anti-counterfeit regulations and fostering stronger collaborations, Navaneel Kar, Managing Director, IPM India, said, "PMI remains deeply committed towards obliteration of illicit tobacco trade, in India. We applaud the GoI's decision to introduce the revolutionary Track & Trace (T&T) technology in tobacco, heralding a transformative era in regulatory reform. With thoughtful execution, India's T&T system will boost public trust, protect revenue, strengthen & modernize enforcement - thereby bringing greater transparency and accountability to the Indian tobacco market. Eliminating illicit tobacco trade has been a longstanding priority for PMI, fundamental to its broader efforts in driving operational excellence and building a sustainable future. We have consistently invested in technologies that shield supply chain integrity, globally, and are partnering with GoI to make this initiative a success. PMI brings valuable, practical experience from some of the world's most advanced T&T systems - implemented voluntarily in 140+ countries, worldwide. In the European Union, we operate under the Tobacco Products Directive, where every pack is digitally tagged and monitored through the supply chain. Similar systems have been successfully deployed in UK, Russia, Jordan, Gulf Cooperation Council (GCC), where PMI has worked with national authorities to build scalable, locally adapted traceability frameworks. Across all markets, the outcomes have been consistent: better visibility, stronger compliance, and measurable reductions in illicit trade."
Rodney Van Dooren, Head of Illicit Trade Prevention, Asia Pacific at Philip Morris International, shared the importance of a transnational effort to curb counterfeits, and added, "The illicit cigarette trade in the ASEAN region presents significant challenges, threatening national security and compromising sovereignty. As per a report by The Transnational Alliance to Combat Illicit Trade (TRACIT), an increasing quantity of counterfeits are distributed in small parcels via postal and express carrier services. Singapore, Thailand, and Cambodia feature among the top provenance economies for shipping counterfeits through small parcel trade. I would also like to commend the Indian government for showcasing the importance of enforcement against intellectual property rights (IPR) violations. The Indian officials highlighted the continued bilateral efforts with Cambodia to solve issues pertaining to IPR violations and customs counterfeiting goods at the WTO Trade Policy Review of the country. Cigarettes manufactured within ASEAN countries are smuggled to other ASEAN countries, other Asia-Pacific countries, and global markets. As a leader of the global south and an innovation hub, India, with its strong enforcement & growing soft power in the region, can lead a concentrated regional effort to curb this menace and protect citizens from counterfeits."
The consolidated fight against counterfeit tobacco products continues to be of increasing relevance for India as the country remains one of the world's largest tobacco markets, besides housing the world's second largest smoking population. Moreover, as a key transit hub, the country stands risked with easy exposure to counterfeits. With increasing global relevance, investor interest and modernization, India's stature as an economic superpower can immensely benefit from a technology-driven, high-impact strategy that can trace counterfeits and mitigate the varied risks posed by them while effectuating a better future for its citizens and tobacco farmers alike.
A cohesive and robust counterfeiting mechanism, integrating innovative technology with strong collaborations seems indispensable in transforming India to take the lead and create one of the world's most transparent, resilient, and future-first tobacco ecosystems.
About IPM India
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.
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