A Complete Ban On Tobacco, Says Ministry Of Commerce
Post on 02,August 2017   4:50 AM
By - PolyEyes Staff
views 508
Bookmark and Share

DELHI: As the matter of fact FDI in tobacco manufacturing has been banned since 2010 in India, foreign tobacco companies can invest through licensing agreement, technological collaborations and by forming trading companies. However this proposal has been opposed by NITI Aayog.

PRO’s of the ban:

Under WHO’s Framework Convention on Tobacco Control (FCTC), India has to reduce higher consumption of tobacco products as India is an integral part and obliged under this convention.

Such proposal may also reduce government’s health expenditure related to tobacco consumption.

It might bring a control on consumption of tobacco promoting healthier lifestyles.


It will end participation of foreign companies in India leading to loss of investments and livelihoods of tobacco farmers.

Under no convention internationally complete ban is mentioned, not even WHO’s FCTC .It does not contain any provisions for banning FDI in tobacco sector as a means of reducing tobacco use.

Foreign tobacco companies like Phillip Morris International of USA says such a ban may be protectionist and discriminatory. India can be challenged under various BITs on account of causing discrimination in domestic and foreign manufacturers.

India has an $11 billion tobacco industry and ban will yield to a loss of employment and foreign exchange with proposed restrictions.

It is unsure that banning foreign manufacturers would reduce tobacco use. The foreign manufacturers may be replaced by domestic ones with the tobacco consumption being intact.

Concluding Remark: India should consider alternative regulatory mechanisms which may better achieve a reduction in tobacco consumption like plain packaging regulations, increase taxes on cigarettes, involving bidis in taxation etc. rather than having a blanket ban on FDI in tobacco sector.

Comments ( 0 )
Add a comment
Your name: *
The content of this field is kept private and will not be shown publicly.

Related Articles

Prelims Online Test Series
UPSC 2018 Prelims Test Series Registration Link

JPSC 2017-18 PRELIMS Test Series

Most Recent Comments

Dear Student your login credentials is your registred phone number as password and your registred email id as under id.



by PolyEyes Help Desk

Hi...I have deposited registration fees for BPSC test series but till today not gate registration no.and payment confirmation. Plz send all details about BPSC test and procedure.

by Nurullah Khan

Answer to Question No. 149 is (a)203 kwh . Kindly go through economic survey of Bihar (2015-16).

by Ashish

ANy vacancy in cecreteriate? 

by Shahbaz Ahmad

I want to know that when the bpscexam will held likewise 60 62 exam


by Abhi

I think cdpo requirenment 2017 will be uploades 

Notification this mont.




Can you please provide me the syllabus for bpsc mains gs paper syllabus. I am not getting it. 


by Nupur

sir,your prediction about cut off for general(85-95) is on the basis of 9000 results or more than that.further there is 35% horizontal reservation to women.please clarify

by Pushkar Verma
Surprisingly individual friendly site. Great info available on couple of gos to.
by Binary Option Trading Systems

sir please do reply on the above comment.also tell about the expected date for main exam

by Pushkar Verma
Get RSS Feeds
  • All Stories
  • Recently Published Stories
  • Most Viewed Stories
  • Just In Photos
  • Most Viewed Photos