Govt Orders Military Shops To Stop Buying Imported Products: Report

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.

In an internal order dated 19 October, as reviewed by Reuters, the defence ministry said that "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 under Atma Nirbhar Bharat Abhiyan.

The report further said that the order did not specify which products would be targeted, however, Reuters sources say that they believe imported liquor could be on the list.