Smoking in India is one of the oldest industries and provides employment to more than five million people directly and indirectly. India is the second-largest producer of tobacco in the world. Smoking has been known since at least 2000 BC when cannabis was smoked and is first mentioned in the Atharvaveda (compiled c. 1200 BC – c. 1000 BC). Fumigation (dhupa) and fire offerings (homa) are prescribed in the Ayurveda for medical purposes and have been practiced for at least 3,000 years while smoking, dhumrapana has been practiced for at least 2,000 years. Tobacco was introduced to India in the 17th century. It later merged with existing practices of smoking (mostly of cannabis).

Godfrey Phillips India Limited is an India-based company that operates in two segments: Cigarettes and tobacco products, and Tea and other retail products. It is the second-largest player in the Indian tobacco industry after ITC Limited.

Smoking in public places was prohibited nationwide from 22 October 2002. There are approximately 120 million smokers in India. According to the World Health Organization (WHO), India is home to 12% of the world's smokers. More than 1 million people die every year due to tobacco related illnesses. As of 2015, the number of men smoking tobacco in India rose to 108 million, an increase of 36%, between 1998 and 2015. As per recent report of WHO, nearly 267 million people consume some form of tobacco in India.

Cannabis smoking in India has been known since at least 2000 BC. Fumigation (dhupa) and fire offerings (homa) are prescribed in the Ayurveda for medical purposes and have been practiced for at least 3,000 years while smoking, dhumrapana (literally "drinking smoke"), has been practiced for at least 2,000 years. Fumigation and fire offerings have been performed with various substances, including clarified butter (ghee), fish offal, dried snakeskins, and various pastes molded around incense sticks and lit to spread the smoke over wide areas. The practice of inhaling smoke was employed as a remedy for many different ailments was not limited to just cannabis, but also various plants and medicinal concoctions recommended to promote general health. Before modern times, smoking was done with pipes with stems of various lengths, or chillums. Today dhumrapana has been replaced almost entirely by cigarette smoking, but both dhupa and homa are still practiced. Beedi, a type of handrolled herbal cigarette consisting of cloves, ground betel nut, and tobacco, usually with rather low proportion of tobacco, are a modern descendant of the historical dhumrapana.

Tobacco was introduced to India in the 17th century. It later merged with existing practices of smoking (mostly of cannabis). By the start of the 20th century, tobacco smoking, especially among the youth, had become so common that the more health-conscious sections of the intelligentsia began to take note of public smoking and widespread sale and marketing of tobacco products as a growing social menace.

The Supreme Court in Murli S Deora vs. Union of India and Ors., recognized the harmful effects of smoking in public and also the effect on passive smokers, and in the absence of statutory provisions at that time, prohibited smoking in public places such as auditoriums, hospital buildings, health institutions, educational institutions, libraries, court buildings, public offices, public conveyances, including the railways.

"Tobacco is universally regarded as one of the major public health hazards and is responsible directly or indirectly for an estimated eight lakh deaths annually in the country. It has also been found that treatment of tobacco related diseases and the loss of productivity caused therein cost the country almost Rs. 13,500 crores annually, which more than offsets all the benefits accruing in the form of revenue and employment generated by tobacco industry".

— Supreme Court of India, Murli S. Deora vs Union of India And Ors on 2 November 2001