IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 10 May 2010 | Removal date: open ended
Still in force

FDI: Entry and ownership rule

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.
 

AFFECTED COUNTRIES

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