The Central government has ordered its 4,000 military shops to stop buying imported goods, the decision could send an undesirable signal to foreign liquor firms.
India’s defence canteens sell liquor, electronics and other goods at discounted prices to soldiers, ex-servicemen, and their families.
An internal order from the defence ministry said that the procurement of directly 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.
According to the industry sources, the order did not specify which products would be targeted, but they believed imported liquor could be included.
In August, a research column of the government-funded Institute for Defence Studies and Analyses (IDSA) stated that imports make up around 6-7% of total sales value in the defence shops.
Chinese products such as diapers, vacuum cleaners, handbags, and laptops, account for the bulk. While imported liquor sales at defence stores generate only about $17 million in annual sales, the order would send a negative signal, said an executive whose company sells products at defence stores.
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