India Maintains E-Cigarette Ban, Disappointing Philip Morris

• Philip Morris CEO called India's ban 'illogical' and said the company privately lobbied top officials and parliamentary panels from 2021-2025 to exempt heat-not-burn products from the prohibition
• India's health ministry stated it 'is not considering revoking, amending or relaxing this ban' and remains committed to evidence-based tobacco control measures
• IQOS has 35 million users globally across 79 markets with 151 billion units sold in 2024, but analysts say an India launch would have offered the 'next leg of the growth story' as other markets mature

India Maintains E-Cigarette Ban, Disappointing Philip Morris

India's government has definitively ruled out relaxing its 2019 ban on e-cigarettes and heated tobacco products, rejecting a four-year lobbying campaign by Philip Morris International (PMI) to introduce its IQOS device to the market.

Key Facts:

• India's health ministry stated it is "not considering revoking, amending or relaxing" the ban on e-cigarettes and heat-not-burn devices
• India represents the world's seventh-largest cigarette market by volume, with over 100 billion cigarettes sold annually
• Tobacco kills more than 1 million people yearly in India
• Philip Morris sold approximately 151 billion IQOS units globally in 2024 across 79 markets

Company Details:

Philip Morris, the world's most valuable tobacco firm, had hoped India would become a key market for IQOS, its heated tobacco device with 35+ million users worldwide. PMI currently holds just 7.6% market share in India's cigarettes sector. Competitor British American Tobacco owns a stake in ITC, which dominates the Indian market.

Lobbying Efforts:

Reuters uncovered confidential company letters from 2021-2025 showing PMI privately lobbied top Indian officials and parliamentary panels. The company proposed bringing scientists and former U.S. FDA officials to present data and requested India's medical research council study heated tobacco products. The state-run ICMR confirmed it is "not considering or undertaking any research" on these products.

Market Implications:

Jefferies analyst Andrei Andon-Ionita noted an IQOS launch would have offered PMI "the next leg of the growth story" and a path to capture significantly more market share. CEO Jacek Olczak called India's position "illogical," arguing the ban ignores evidence that smoking alternatives reduce traditional cigarette use.