Reserve Bank today said the Foreign Direct Investment (FDI)
in manufacturing of tobacoo products is prohibited, though activities such as
retail and wholesale trading fall under the sectoral restrictions. This
prohibition will be in case of manufacturing of cigars, cigarillos, cheroots
and cigarettes of tobacco or of tobacco substitutes. Henceforth with this FDI
restriction, other activities related to these products will be governed by the
sectoral restrictions laid down in the FDI policy. It should be noted that the
Department of Industrial Policy & Promotion (DIPP), under the aegis of
Union Commerce Ministry has framed these guidelines on this sectoral
restrictions.
Foreign direct investment (FDI) is prohibited in the
manufacturing of cigars, cheroots, cigarillos and cigarettes, of tobacco or of
tobacco substitutes, RBI said in a notification.
The Department of Industrial Policy & Promotion, under
the Commerce Ministry has framed these guidelines on sectoral restrictions.
EmoticonEmoticon