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