The per capita consumption of cigarettes in India is a tenth of the world average. In the recent past, the consumption of tobacco has been reduced by anti-tobacco drives and the ban of consumption in public areas.
The biggest player in this industry is ITC with a market share of 72 per cent.
The government has announced significant increase in taxes on tobacco products in the budget for the fiscal year 2012-13. Health experts say that taxes must be increased manifold on tobacco products as evidence shows that price rise of 10% decreases consumption of tobacco products by up to 8% particularly in low and middle-income levels in India.