The Indian government needs urgently to plug all loopholes in its Foreign Direct Investment (FDI) policy as it applies to tobacco, according to a Press Trust of India story quoting the non-profit organization Crusade Against Tobacco (CAT).
CAT has called on the government to ensure that no steps are taken to dilute the current policy and that ultimately a comprehensive ban is brought in on tobacco-sector FDI.
It says that the current policy only partially prohibits tobacco-sector FDI and that it has been ineffective in stopping innovative and indirect channels for foreign tobacco firms to fund promotion of their global brands in India.
“There is unanimous acceptance among health NGO’s and Ministry of Health that the time has come for bold steps to reduce tobacco consumption in India,” said CAT chairman Vincent Nazareth. “A complete ban on FDI in tobacco is a pre-requisite to provide a levelling ground for tobacco control policies.”
In a letter addressed to the Prime Minister’s Office and to the finance and commerce ministries, the CAT chairman said the current policy banned FDI in manufacturing, but left a loophole, which had been exploited.
“This loophole keeps the interests of large foreign tobacco players alive in the Indian tobacco market,” Nazareth said. “This gives them a strong reason to continue lobbying for slowing down tobacco control efforts in India.
“If comprehensive ban can be brought about in lotteries and gambling activities, why spare tobacco?”
Nazareth asked the government also to initiate an investigation on funding in the tobacco sector during the past nine years to see whether laws had been broken and regulations infringed.