Mumbai, July 6 (KNN) The Reserve Bank of India (RBI) has prohibited Foreign Direct Investment (FDI) in manufacturing of tobacco products, however, the FDI in other activities relating to the products have been allowed.
 
Foreign direct investment (FDI) is prohibited in the manufacturing of cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes, RBI said in a notification last week.
 
"It is clarified that the prohibition applies only to manufacturing of the products mentioned therein and foreign direct investment in other activities relating to these products including wholesale cash and carry, retail trading shall be governed by the sectoral restrictions laid down in the FDI policy," it said.
 
The Department of Industrial Policy & Promotion, under the Commerce Ministry has framed these guidelines on sectoral restrictions. (KNN Bureau)