Impact of WHO-FCTC on the performance of Indian tobacco sector

Abstract

Tobacco, a commercial crop, plays a vital role in contributing significantly to the national exchequer besides providing livelihood security to a sizeable population in India. The present study assessed the impact of WHOFCTC on the performance of the Indian tobacco sector. The growth rate, instability and competitive indices were estimated using the secondary data by dividing the study period into pre-FCTC (1998–2005), transitional-FCTC (2006–13), and post-FCTC (2013–20) regimes. The analysis revealed that tobacco production and export witnessed a high growth rate, high export instability and enhanced export competitiveness during pre- and trans-FCTC regimes, and a low growth rate in production and export with low instability and declining global competitiveness in the post-FCTC regime. This implies the growing public awareness of the adverse effects of tobacco and the practical implementation of tobacco control policies in India and across the globe. Nevertheless, policy interventions need to be further accelerated. Also, it is inevitable to identify economically viable alternative crops and other enterprises to avert possible adverse environmental and socio-economic impacts from the multiple cultivators and other stakeholders in India.