India’s federal cabinet on Thursday banned foreign direct investment (FDI) in manufacturing of cigarettes for domestic consumption as well as for exports.
The move does not have any impact on existing FDI investments in the country, but plans of foreign tobacco players to increase existing shares in the Indian tobacco sector are thus jeopardized. JTI in particular has been waiting for Indian government approval to expand production since June 2008, said executive deputy president Masakazu Shimizu in March.
The government has kept open the option of FDI in tobacco farming. (pi)
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