It is easy to understand why the Government is not keen to curb the use of tobacco, it sthe biggest revenue-generating industry in India.
India is one of the biggest tobacco markets in the world, ranking third in total tobacco consumption behind only the markets of China and the United States. A popular notion upheld by the tobacco industry is-"economy needs tobacco." This argument pertains to industry supporting revenue generation for farmers and workers in the tobacco factories, distributors, vendors, and advertising agencies, and profits to government from exports and taxes. It is estimated from the Annual Survey of Industries (ASI) data that almost 85% of employees of tobacco manufacturing industries are employed in the beedi industry. Export of tobacco is an important source of revenue with a quantity of 1,28,460 M, generating a revenue of 2173 crore rupees for the year 2009. A major part of this revenue comes from the export of unmanufactured tobacco (as high as 85%).
Of the 4 major manufacturers of cigarettes in India, the ITC Limited, Godfrey Phillips India (GPI) Limited, Vazir Sultan Tobacco (VST) Industries Limited, and the Golden Tobacco Company (GTC) Limited, the ITC Limited alone accounts for more than 60% of the total production and 80% of the sales and market share. [13]
The annual turnover of the leading tobacco companies, such as ITC and Godfrey Phillips presently exceeds Rs 2000 crores (>$450 million).
In 2000-2001, the contribution of tobacco to the Indian economy was to the extent of Rs 81,820 million, which accounted for about 12% of the total excise collections. From 1951 to 2001, there was an increase in the production by 130%, in excise revenue by 31,614%, in export revenue by 5823%, and in consumption by 92%. Tobacco contributes about 4% to the India's agricultural exports. and steadily increasing!
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