India has a thriving tobacco industry which makes it one of the biggest producers of tobacco worldwide, but the country holds a negligible share of the global tobacco business. The major share of India’s tobacco exports is made up of cigarettes. While consumption among a large part of the population is limited to chewing tobacco, cigarette smokers account for a far less share. This is mainly due to the high prices of cigarettes as a product. The domestic tobacco industry is often at the receiving end of a lot of restrictions imposed by the government, including the high taxation policy, curbs imposed on direct advertising in mass media and anti-tobacco awareness drives. The industry also suffers from dominance by the unorganised sector resulting in the entire tax burden being borne by the organised sector. At the same time, the industry provides direct and indirect employment to a substantial section of the Indian population. Hide this