Implications of Tobacco Industry in India

Indian tobacco industry is one of the largest commercial sectors and an important source of direct and indirect employment in many regions of the country. With a total production value of US$ 1.6 trillion in 2012, the Tobacco industry's contribution to the nation's GDP amounted to 1.1% representing about 7% of the total for the manufacturing sector. Tobacco, being a labor intensive crop, provides employment to more than 60 lakh people who are engaged in the farming, curing, grading, primary marketing, processing, packaging, manufacturing, distribution, and retailing activities besides exporting.

In this backdrop, this study analyses different important factors of tobacco business in India such as Operating Environment, Legislative provisions, Taxation and Duties Levied, and Illicit Trade practices. Study provides a very deep insight into the overall structure of tobacco industry and also analyzes economics of tobacco versus other alternate crops, and an analysis of the future of the tobacco industry in India.