Highlights
•India’s big decision regarding military shops.
•Order prohibiting import of foreign goods into army canteens.
In the midst of the Corona crisis, India has taken a big decision regarding Army Canteen (Military Shops). An order has been issued to stop 4,000 military shops from purchasing imported goods. It is being told that this decision of the government may give a big blow to liquor companies like Diageo and Pernod Ricard. Import restrictions India’s defense canteen sells liquor, electronics and other goods to soldiers, ex-servicemen and their families at low prices. It is the largest retail chain in India with annual sales of over 2 billion dollars. An internal order of the Ministry of Defense, reviewed by Reuters on October 19, states that direct imported goods will not be procured in the future. The order stated that the issue was discussed with the Army, Air Force and Navy in May and July and was intended to support Prime Minister Narendra Modi’s campaign to promote household goods. However, a defense ministry spokesperson declined to comment on the entire matter. Government’s big decision regarding defense canteen According to IDSA, defense shops account for about 6-7 percent of the total selling price. Chinese products such as diapers, vacuum cleaners, handbags and laptops account for the bulk of this. Reuters reported in June that Pernod and Diageo had stopped taking orders for their imported brands from such government stores. Imported liquor sales at defense stores generate $ 17 million in annual sales. This decision of the government will indicate negative. Significantly, India has taken steps in recent months to curb Chinese businesses and investments following the border conflict, which killed 20 Indian soldiers.
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