Govt Likely to Com­pletely Ban FDI in To­bacco Sec­tor

The Economic Times - - Economy: Macro, Micro & More -

Af­ter mak­ing larger pic­to­rial warn­ings on cig­a­rette pack­ets manda­tory, the govern­ment 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.


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