PMO considers ban on all FDI in India's tobacco industry
The Prime Minister's Office is thinking about banning all foreign direct investment (FDI) in India's tobacco industry.
Top officials recently met to talk through the idea, especially how it could affect farmers in big tobacco states like Andhra Pradesh and Karnataka.
The government wants to understand what this move could mean for everyone involved, from growers to businesses, before making a final call.
India: FDI mostly banned, technology allowed
Right now, FDI in the manufacturing of cigarettes, cigars, cheroots and cigarillos made from tobacco or tobacco substitutes is mostly banned, except for technology collaboration, including licensing for franchise, trademark, brand name and management contracts in the sector.
India exports a lot of tobacco worldwide, so a total ban could shake things up for local economies and politics, especially since the 2024 proposal met concerns from tobacco farmers' associations.
The government is also trying to balance public health goals with the livelihoods of tobacco farmers and the wider value chain, which is not an easy task.