A new working paper released by the Economic Advisory Council to the Prime Minister (EAC-PM) has raised concerns about a sharp rise in tobacco consumption across both rural and urban India over the past decade, highlighting growing risks for public health and government finances.
Titled “Rise in Tobacco Consumption and Policy Implications,” the study was authored by Shamika Ravi, a member of the EAC-PM, and researcher Partha Protim Barman. It analyses data from the 2011-12 National Sample Survey (NSS) 68th Round and the 2023-24 Household Consumption Expenditure Survey (HCES) to examine how tobacco use patterns have changed across India.
Tobacco Use Expands Across Rural and Urban India
The paper finds that tobacco consumption has expanded significantly across the country in the last decade. In rural India, the number of households consuming tobacco increased from 9.9 crore in 2011-12 (59.3 percent of rural households) to 13.3 crore in 2023-24 (68.6 percent), representing a 33 percent rise in absolute numbers.
Urban India has also seen a notable increase. Tobacco-consuming households rose from 2.8 crore (34.9 percent) in 2011-12 to 4.7 crore (45.6 percent) in 2023-24, a surge of nearly 60 percent in absolute numbers over the same period.
Researchers warn that tobacco consumption is becoming increasingly widespread and entrenched across different income groups and regions. The study notes that tobacco use is “rising fast, spreading wider, and embedding itself deeper into the lives of poorer households.”
Gutkha and Cigarette Consumption Surging
One of the most striking findings is the dramatic rise in consumption of Gutkha, a smokeless tobacco product.
In rural areas, the share of households consuming gutkha jumped from 5.33 percent in 2011-12 (around 89 lakh households) to 30.45 percent in 2023-24 (about 5.96 crore households) — an increase of 565 percent.
Gutkha now accounts for 41 percent of total rural tobacco expenditure, making it the most widely consumed tobacco product in rural markets.
Cigarette consumption has also increased. In rural areas, the share of households using cigarettes rose from 4.81 percent to 11.2 percent, while in urban India it increased from 8.41 percent to 18.05 percent over the same period.
Tobacco Spending Rising Rapidly
The report also highlights a sharp increase in household spending on tobacco products. After adjusting for inflation, per-capita tobacco expenditure rose by 58 percent in rural areas and 77 percent in urban areas between 2011-12 and 2023-24.
Currently, tobacco accounts for around 1.5 percent of monthly per-capita consumption expenditure in rural India and about 1 percent in urban areas, indicating a growing share of household budgets being spent on addictive products.
Poorer Households Spending More on Tobacco
The study finds that tobacco consumption is disproportionately higher among poorer households. In rural India, over 70 percent of households in the bottom 40 percent income group reported tobacco use, compared with 63.4 percent among the top 20 percent.
Alarmingly, poorer households also spend a larger share of their income on tobacco. In rural areas, the bottom 40 percent spend about 4 percent of their consumption expenditure on tobacco and intoxicants, compared with just 2.5 percent on education, according to the analysis.
Growing Public Health Challenge
The authors warn that rising tobacco consumption could worsen India’s already significant burden of non-communicable diseases. According to health ministry estimates cited in the report, around 13 lakh deaths in India each year are linked to tobacco use, including cancers, cardiovascular diseases and respiratory illnesses.
The paper argues that the rise in tobacco consumption could create serious long-term challenges for public health systems and government spending, especially as publicly funded healthcare coverage continues to expand.
Policy Measures Suggested
To tackle the rising trend, the working paper recommends several policy interventions, including stronger taxation on tobacco products, stricter enforcement against illicit sales, expanded awareness campaigns, and integrating tobacco-cessation counselling into primary healthcare services.
Researchers warn that without stronger measures, rising tobacco consumption could undermine India’s efforts to improve health outcomes and strengthen human capital in the long run.
