India has ordered its 4,000 military shops to stop buying imported goods, a report by Reuters claimed. As per the 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 military forces, ex-servicemen and their families. With annual sales of over USD2 billion, they make up one of the largest retail chains in India.

The order said the issue had been discussed with the Army, Air Force and Navy in May & July, and was aimed at supporting PM Narendra Modi’s Aatma Nirbhar Bharat campaign to promote domestic goods. However, it did not specify which products would be targeted. 

According to industry sources that Reuters spoke, imported liquor could also be on the list. The move could send an unwelcome signal to foreign liquor firms such as Diageo and Pernod Ricard. In June, it was reported that Pernod Ricard India, whose brands include Chivas and Glenlivet scotch whisky, received no order in May for imported spirits, compared with monthly orders of 4,500-5,000 cases by defence stores. One case typically holds six, nine or 12 bottles of liquor.

Imports form around 6-7 pc of total sales value in defence shops, according to an August research column of the government-funded Institute for Defence Studies and Analyses (IDSA). Chinese products such as diapers, vacuum cleaners, handbags and laptops, account for the bulk if it, it said.  India has in recent months taken steps to curb Chinese businesses and investments in retaliation to a border clash in the Galwan Valley in June that killed 20 Indian soldiers.

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