No extra scotch? India strikes to ban imported items at army retailers

NEW DELHI: India has ordered its 4,000 army retailers to cease shopping for imported items, in response to a doc reviewed by Reuters, a transfer that would ship an unwelcome sign to overseas liquor companies comparable to Diageo and Pernod Ricard.
The defence canteens promote liquor, electronics and different items at discounted costs to troopers, ex-servicemen and their households. With annual gross sales of over $2 billion, they make up one of many largest retail chains in India.
The October 19 inside order from the defence ministry, reviewed by Reuters, mentioned that in future, “procurement of direct imported gadgets shall not be undertaken”.
The order mentioned the problem had been mentioned with the military, air power and navy in May and July, and was aimed toward supporting Prime Minister Narendra Modi’s marketing campaign to advertise home items. A defence ministry spokesman declined to remark.
The order didn’t specify which merchandise could be focused. However, business sources mentioned they believed imported liquor may very well be on the listing.
Imports make up round 6-7% of whole gross sales worth within the defence retailers, in response to an August analysis column of the government-funded Institute for Defence Studies and Analyses (IDSA). Chinese merchandise comparable to diapers, vacuum cleaners, purses and laptops, account for the majority if it, it mentioned.
Reuters reported in June that Pernod and Diageo had briefly stopped receiving orders for his or her imported manufacturers from such authorities shops. Diageo didn’t reply to a request for remark, whereas a Pernod spokesman declined remark.
While imported liquor gross sales at defence shops generate solely about $17 million in annual gross sales, the order would ship a adverse sign, mentioned an government whose firm sells merchandise at defence shops.
“The (overseas liquor) gross sales are small – however why would a authorities which is wanting to draw overseas investments do that? It’s a complicated, conflicting sign,” mentioned the manager.
India has in latest months taken steps to curb Chinese companies and investments following a border conflict in June that killed 20 of its troopers.

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