Govt Likely to Completely Ban FDI in Tobacco Sector
After making larger pictorial warnings on cigarette packets mandatory, the govern ment is now working on a proposal to completely ban foreign direct investment (FDI) in the tobacco sector. At present, FDI is allowed in technology collaboration in any form, including licensing for franchise, trademark and brand name in the sector. However, it is prohibited in manufacturing of cigars, cigarettes of tobacco and tobacco substitutes.According to sources, the commerce ministry is proposing to ban FDI in licensing for franchise, trademark, brand name and management contract in the sector.
The Economic Times New Delhi,26th April 2016