Updated: October 24, 2020 7:14:46 am
India has ordered its 4,000 military shops to stop buying imported goods, according to a document reviewed by Reuters, a move that could send an unwelcome signal to foreign liquor firms such as Diageo and Pernod Ricard.
India’s defence canteens sell liquor, electronics and other goods at discounted prices to soldiers, ex-servicemen and their families. With annual sales of over $2 billion, they make up one of the largest retail chains in India.
The Oct. 19 internal order from the defence ministry, reviewed by Reuters, said that in future, “procurement of direct imported items shall not be undertaken”.
The order said the issue had been discussed with the army, air force and navy in May and July, and was aimed at supporting Prime Minister Narendra Modi’s campaign to promote domestic goods. A defence ministry spokesman declined to comment.
The order did not specify which products would be targeted. However, industry sources said they believed imported liquor could be on the list.
Imports make up around 6-7% of total sales value in the…