India: Ban on FDI in tobacco industry
Description
The Department of Industrial Policy & Promotion (DIPP), the nodal department for framing the FDI policy, on issued on 10 May 2010 a notification banning foreign direct investment in manufacturing of cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes. These products have been included in the list activities/sectors prohibited for FDI. The DIPP issued amendments to this effect in the consolidated FDI policy.
A ban on FDI in manufacturing of cigarettes will affect existing foreign players’ future investment plans in the country. However, it will not affect their existing investments in Indian ventures. At present, three major global players — British American Tobacco (BAT), Japan Tobacco and the Altria Group — have large investments in India.
Any Evidence-Based Deliberation:
| Question | Result |
|---|---|
| Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations? | |
| Is there any evidence that alternatives to the proposed measure were considered? | |
| Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government? | |
| Was such evidence identified? | |
| Is such evidence publicly available? | |
| Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives? | |
| Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken? | |
| Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory? | |
| Did the government state its intention to review the measure within one year of implementation? |
Date Discovered:
Implemented: Yes
Date of inception: 10 May 2010
GTA Evaluation: Red
Source:
World Investment Report 2010 - http://www.unctad.org/en/docs/wir2010ch3_en.pdf
http://www.financialexpress.com/news/govt-notifies-fdi-ban-in-cigarette-...
http://www.tobacco-news.net/govt-may-ban-fdi-in-cigarette-making/
Government Response:
- 483 reads
