FDI in manufacturing of tobacco products prohibited: RBI

Source: PTI 

Reserve Bank has said that Foreign Direct Investment in manufacturing of tobacco products is prohibited, though activities such as retail and wholesale trading fall under the sectoral restrictions. In a notification issued on Friday, RBI said Foreign Direct Investment (FDI) is prohibited in the manufacturing of cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes. It further clarified that the prohibition applies only to manufacturing of the products mentioned therein and foreign direct investment in other activities relating to these products including wholesale cash and carry, retail trading shall be governed by the sectoral restrictions laid down in the FDI policy. The Department of Industrial Policy & Promotion, under the Ministry of Commerce has framed these guidelines on sectoral restrictions.    

July 4, 2015 | 6:47 pm IST.