Indian tobacco is known the world over for its richness, flavor and smoothness. Hence it has gained much inroads in the international tobacco market. The annual production of tobacco in the world is about 725 million kgs. Of this, the Flue Cured Virginia (FCV) tobacco which is the main exportable variety of tobacco that is produced in the states of Andhra Pradesh and Karnataka in India account for about 300 million kgs.
The Indian tobacco industry makes a significant contribution to the national economy by earning about US$ 900 million of foreign exchange. US$ 3.4 is earned by way of excise levies on manufactured tobacco. Tobacco is an important commercial crop in India that provides employment to nearly 36 million people. Exports of Indian tobacco and tobacco products have witnessed a rising trend and growth in the last seven years.
Exports have grown at a rate of 15.8 per cent from US$ 322.49 million in 2005-06 to a record US$ 900.64 million in 2012-13. India is the second-largest exporter of FCV tobacco in the world. Indian tobacco is exported to around 100 countries. India exports unmanufactured tobacco to Western Europe, South-east Asia, East Europe and Africa. In 2012-13, the country exported 260,910 tonnes of tobacco and tobacco products. Exports of Indian tobacco has reached US$ 900.64 million during 2012-13.
INDIAN TOBACCO INDUSTRY AT A GLANCE IN 2013 - 2014 
