Global business news for a smarter world
© 2026 Quartz Media, Inc. All rights reserved.
How Cannabis Became Illegal in India: History, Law, and Ongoing Debate
For millennia, cannabis has been woven into the cultural and religious fabric of India. Sacred texts reference its use, and the plant’s leaves—ground into a paste called bhaang—are still offered during festivals such as Holi and Shivratri. Despite this long‑standing acceptance, the possession and consumption of cannabis flowers and resin are today punishable under Indian law.
From International Pressure to Domestic Legislation
In 1961, the United Nations Single Convention on Narcotic Drugs sought to classify cannabis alongside hard opioids. India objected, arguing that the plant’s traditional and medicinal uses warranted a distinct treatment. However, as Kartik Ganapathy, senior founding partner at IndusLaw, explains, the geopolitical climate of the Cold War shifted the calculus: “India needed the US as an ally and access to American technology,” he notes. By 1985, facing diplomatic and economic pressures, India enacted the Narcotic Drugs and Psychotropic Substances (NDPS) Act.
The NDPS Act criminalized the fruit (buds) and flower of the cannabis plant, while explicitly exempting the leaves. This legal distinction permits the preparation and sale of bhaang, but subjects anyone caught possessing or consuming weed or hash to a fine of up to ₹10,000 (≈ US $135) and imprisonment for up to one year.
Continued Use Despite Prohibition
Official surveys estimate that 31 million Indians—about 2.8 % of the population—reported using some form of cannabis in 2018. A separate study by the Israel‑based firm Seedo found that Delhi alone consumed roughly 32.38 metric tons of cannabis that year, suggesting a potential tax revenue of ₹725 crore if the substance were regulated. Cannabis also grows prolifically in the Himalayan states of Uttarakhand and Himachal Pradesh, where it remains a part of local agrarian practices.
Economic and Industrial Opportunities Lost
Experts argue that prohibition foregoes substantial economic gains. Hemp, the non‑psychoactive variant of cannabis, is hardy, low‑input, and environmentally friendly. It holds promise for textiles, biodegradable plastics, and medicinal products. Currently, only a handful of Indian companies—such as Boheco (Bombay Hemp Company) and Hemp & Co—are licensed to work with hemp for wellness items, a limitation that stifles broader innovation.
Ganapathy points out that the United States, after decades of stigma, has reversed course, legalizing cannabis in multiple states and capitalizing on a burgeoning market. “India knew this market potential, but we allowed ourselves to get into this trap,” he says, noting that the country’s cautious approach contrasts with the US’s pragmatic, profit‑driven embrace.
Cultural Stigma and the Path Forward
Recent public discourse—fueled by high‑profile cases such as the alleged involvement of Bollywood actor Sushant Singh Rajput—has reinforced negative perceptions of cannabis, framing it as a dangerous drug despite evidence of its therapeutic benefits. Activists and lawmakers, including MPs Tathagata Satpathy, Maneka Gandhi, and Shashi Tharoor, have called for a re‑examination of the NDPS provisions, advocating for decriminalization or regulated legalization to harness the plant’s economic and medicinal potential.
As the debate continues, the tension between cultural tradition, international treaty obligations, and domestic economic interests remains central to India’s cannabis policy.
For a deeper dive into the origins of India’s cannabis laws, see the original Quartz analysis: Here
