Lok Sabha Question No. 1355 (UNSTARRED), answered on 2016-07-25
Subject: FDI in Tobacco Sector
Ministry: COMMERCE AND INDUSTRY
Asked by: SUDHEER GUPTA, DHARMENDRA YADAV, GAJANAN CHANDRAKANT KIRTIKAR, KUNWAR HARIBANSH SINGH, YERRAM VENKATA SUBBAREDDY, ANANDRAO  ADSUL, SUNIL BALIRAM GAIKWAD, KULAMANI SAMAL, VINAYAK BHAURAO RAUT, VIJAY KUMAR S.R., T. RADHAKRISHNAN, BIDYUT BARAN MAHATO, VIJAYSINH MOHITE PATIL, SUPRIYA SADANAND SULE, HEENA VIJAYKUMAR GAVIT, DHANANJAY BHIMRAO MAHADIK, RAJEEV SHANKARRAO SATAV

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

## LOK SABHA

UNSTARRED QUESTION NO. 1355.

TO BE ANSWERED ON MONDAY, THE 25 TH  JULY, 2016.

## FDI IN TOBACCO SECTOR

## 1355.  SHRI SUDHEER GUPTA:

SHRI DHARMENDRA YADAV:

SHRI GAJANAN KIRTIKAR:

KUNWAR HARIBANSH SINGH:

SHRI Y.V. SUBBA REDDY:

SHRI ANANDRAO ADSUL:

DR. SUNIL BALIRAM GAIKWAD:

DR. KULAMANI SAMAL:

SHRI VINAYAK BHAURAO RAUT:

SHRI S.R. VIJAYAKUMAR:

SHRI T. RADHAKRISHNAN:

SHRI BIDYUT BARAN MAHATO:

SHRI MOHITE PATIL VIJAYSINH SHANKARRAO:

SHRIMATI SUPRIYA SULE:

DR. HEENA VIJAYKUMAR GAVIT:

SHRI DHANANJAY MAHADIK:

SHRI SATAV RAJEEV:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज् यवव द्यग ं ्री

- (a) the  present  policy  of  the  Government  on Foreign Direct Investment (FDI) in the Tobacco sector;
- (b) whether  the  Government  has  any  proposal  to  impose  a  ban  on  FDI  in  this sector and if so, the details thereof and the reasons therefor;
- (c) whether  there  are  many  flaws  in  this  proposal  and  various  organizations/ departments have raised concern about major tobacco players taking advantage of these flaws and if so, the reaction of the Government thereto;
- (d) whether these organizations/ departments have requested the Government to remove these flaws and impose a complete ban on FDI in tobacco sector and if so, the action taken/proposed to be taken by the Government in this regard; and
- (e) whether  any  cases  of  illegal  import  of  tobacco  products  into  the  country especially cigarettes have come to the notice of the Government and if so, the details thereof along with the action taken by the Government in this regard?

## ANSWER

वाणिज् यवव द्यग ााज् यं ्रीस् वतं ््रभााा(स्रींतंरीिरंमलााीरीतंाांि( THE MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF COMMERCE & INDUSTRY (SHRIMATI NIRMALA SITHARAMAN)

- (a): As  per extant Foreign Direct Investment  (FDI) policy, FDI  is prohibited in manufacturing of cigars, cheroots, cigarillos and cigarettes, of tobacco  or  of tobacco  substitutes. FDI  in other

activities  relating  to  these  products  including  wholesale  cash  and carry, retail trading etc. shall be governed  by  the applicable restrictions as laid down in the FDI policy.

- (b): No decision has been taken by the Government in this regard.
- (c) & (d): The  Government  reviews  FDI  policy  on  different  sectors  on  an ongoing  basis  and  changes  are  made  in  the  policy,  from  time  to time,  to  ensure  that  India's  attractiveness  as  an  investor-friendly investment  destination  increases.  Changes  are  made  in  the  FDI policy after intensive consultation with stakeholders including Ministries/ Departments concerned, Apex Industry Associations  and other organizations.
- (e): No such data is centrally maintained.

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