On Wednesday, India's cabinet banned production and import of electronic cigarettes.
It's a public health move that is seen dashing the expansion plans of companies such as Juul Labs and Philip Morris.
Finance Minister Nirmala Sitharaman told a media briefing that an executive order will be passed to ban the products.
But India has 106 million adult smokers, making it a lucrative market for firms such as Juul and Philip Morris.
India's health ministry had proposed to ban the devices in the public interest.