Business

Ban on Imported Goods in Army Canteens Spurs Domestic Manufacturing and Self-Reliance

A four-year-old ban on the sale of imported items in Canteen Stores Department (CSD) outlets has significantly advanced the ‘Make in India’ initiative, leading to a rise in domestic manufacturing. The ban, implemented in October 2020, was aimed at supporting the “Atmanirbhar Bharat Abhiyan” (self-reliant India movement), which encourages local production and self-sufficiency.

Impact of the Import Ban

The Defence Ministry’s decision to halt the sale of 431 imported items in CSD outlets has yielded notable results. According to officials, the move prompted several firms to shift their production to India. As a result, 255 of the banned items have now been reintroduced in CSD outlets, which cater to soldiers, ex-servicemen, and their families.

“This has had a positive effect as many firms shifted their manufacturing to India. As a result, 255 of the 421 items that were banned have been reintroduced in CSD,” stated an official familiar with the matter.

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Diverse Product Range Reintroduced

The CSD catalog includes a wide array of products such as cars, two-wheelers, liquor, white goods, home essentials, food items, toiletries, luggage, watches, footwear, stationery, and other general merchandise. Notably, branded products now available again include television sets, refrigerators, cosmetic products, sports shoes, sunglasses, and table fans. However, the specific list of companies that have commenced domestic production was not immediately disclosed.

Strategic Push for Self-Reliance

The 2020 ban was part of a broader government strategy to enhance self-reliance across various sectors. In addition to the restrictions on imported goods, India has introduced several measures to bolster domestic defense manufacturing. These measures include phased bans on the import of numerous weapons, systems, sub-systems, and components. Additionally, the government has established a separate budget for purchasing locally made military hardware, increased foreign direct investment (FDI) from 49% to 74%, and improved ease of doing business.

Enhancing Army Facilities and Quality Assurance

The army is committed to enhancing the living conditions and facilities for troops. This includes ensuring high-quality rations, incorporating technology, and optimizing resource use to maintain combat readiness. The army has partnered with the Food Safety and Standards Authority of India (FSSAI) to leverage its nationwide network for quality assurance of rations supplied to the troops.

Innovations in Logistics and Environmental Initiatives

The establishment of joint logistics nodes has improved the integration of logistics services for the three armed services, ensuring optimal resource utilization. Furthermore, the transition from animal transport to trucks and all-terrain vehicles has improved last-mile connectivity, especially in mountainous regions.

In a move towards environmental sustainability, the army is collaborating with the National Thermal Power Corporation to develop a green hydrogen plant. This plant will power the Chushul garrison and buses in Leh, underscoring the army’s commitment to eco-friendly initiatives.

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Srishti Mukherjee

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