During the past five decades, a large number of tobacco varieties have been developed for different end uses in India through pure line selection from local land races, mutation breeding, and hybridization involving local selections and exotic introductions followed by pedigree selection. No systematic effort has been made to understand the existing diversity pattern in these varieties, which is crucial to define future breeding strategy in this important commercial crop. We characterized 46 varieties belonging to 10 different manufacturing tobacco types cultivated under different agro-climatic conditions in India along with two wild species of Nicotiana using 40 arbitrary primers in RAPID. The level of polymorphism among the varieties of N. tabacum was 59.4%, which was more than double the level observed in the other cultivated species N. rustica (25.2%). A broader range (0.64 to 0.94) of pair wise similarity measures in N. tabacum than in N. rustica (0.83 to 0.92) reflected the more diversified breeding efforts in the major cultivated species. The two wild species namely, N. glutinosa and N. gossei clustered separately from the two cultivated species. Molecular classification of the varieties corresponded largely with their manufacturing trait and parentage. RAPID markers provided sufficient resolution to distinguish among closely related tobacco types. Nine RAPID markers were found conserved across all the varieties and species. The markers found specific to the varieties can be used in correct identification of the carrier genotypes in trade and commerce. This is the first report on the molecular diversity analysis of Indian tobacco.