India has ruled out any possibility of relaxing its ban on electronic cigarettes, which would have permitted the use of heated tobacco products, dealing a blow to Philip Morris International's years-long private lobbying campaign aimed at gaining New Delhi's approval for such devices.

India prohibited e-cigarettes in 2019, including heated tobacco products. The country, which records annual cigarette sales exceeding 100 billion sticks, is the world's seventh-largest cigarette market and suffers over one million tobacco-related deaths each year.

Philip Morris, the world's most valuable tobacco company, had hoped India would become a major market for its IQOS heated tobacco device, which the firm claims poses fewer health risks than traditional smoking.

"The Indian government is not considering revoking, amending, or relaxing this ban," the Indian Health Ministry stated in response to a Reuters inquiry regarding Philip Morris's lobbying efforts.

In a declaration, the ministry added, "India remains committed to evidence-based tobacco control and cessation measures," emphasizing that existing legislation explicitly bans heated tobacco devices and that this stance will be maintained.

A review of confidential company correspondence from 2021 to 2025 revealed that the maker of Marlboro cigarettes privately lobbied senior Indian officials and parliamentary committees to consider the science behind devices like IQOS, conduct research on them, and exempt heated tobacco products from the ban.

In January, Philip Morris executives also met with several state government officials at the Davos forum to discuss how the company could use products like IQOS to generate long-term value in the tobacco sector.

A Philip Morris spokesperson declined to comment on the health ministry's statement but noted that the company "regularly engages with governments worldwide, including at major international forums like Davos, to discuss how smoke-free products can significantly benefit public health."

CEO Jacek Olczak, in a Friday interview with Reuters, stated that he has engaged with various stakeholders in India, adding that it is "illogical" for the Indian market to be closed to smoking alternatives like heated tobacco and vapes while remaining open to traditional cigarettes.

It remains unclear whether other companies are lobbying India against the e-cigarette ban. Philip Morris claims to hold up to 76% of the global heated tobacco market.

According to Euromonitor estimates, Philip Morris's share of the Indian cigarette market reached 7.6% in 2024, up from just 1.75% in 2019.

Its competitor, British American Tobacco, holds a stake in Indian firm ITC, which dominates the local market.

Jefferies analyst Andrei Andon-Ionita noted that launching IQOS in India would provide Philip Morris International with a pathway to capture greater market share, offering a "next growth vector" as other major markets mature.

Launched in 2014, IQOS has over 35 million users globally and serves as Philip Morris's flagship alternative smoking product, enjoying popularity in countries such as Japan.

While some regulators, including the U.S. Food and Drug Administration, acknowledge that switching from cigarettes to IQOS may benefit public health, the World Health Organization has warned of the risks associated with heated tobacco.

India's 2019 ban effectively blocked many products from companies like vape manufacturer Juul and Philip Morris.

Olczak argued that India's prohibition of smoking alternatives ignores scientific evidence and data showing that smoking rates decline when substitutes are available.

The company's shares remained largely stable in Wednesday's pre-market trading.

Last year, approximately 151 billion sticks of IQOS heated tobacco were sold across 79 markets.

Correspondence indicates that Philip Morris conducted a four-year campaign urging Indian officials and a parliamentary health panel to allow the use of heated tobacco devices.

In a 2023 letter, then-Chief Strategy Officer Ankur Modi requested that India consider addressing smoking-related harms through alternatives, "similar to harm reduction policies for HIV/AIDS," which include measures like promoting condom use.

The letter also suggested inviting Philip Morris scientists and experts, such as former U.S. FDA officials, to present data and global experiences demonstrating how such devices could "improve lives."

In a November letter to the health minister, Philip Morris stated, "We are firmly committed to and investing in India's future," and urged the Indian Council of Medical Research to review scientific data on heated tobacco products.

The state-run Indian Council of Medical Research informed Reuters in a statement that it "has not considered or conducted any research on heated tobacco products."