India's Procurement Market Opens to British Firms Under New FTA

In a strategic move, India has opened its central government procurement market to British companies as part of a newly announced free trade agreement. An official confirmed on Wednesday that this opportunity will be limited to non-sensitive central-level entities within the procurement sector.

The agreement mirrors a similar arrangement with the UAE, allowing UAE firms access to procurement tenders exceeding Rs 200 crore. British companies, classified as Class II local suppliers, will now be able to bid for domestic tenders, though exclusions apply concerning state and local government entities.

This development signals a shift as it seeks to maintain the balance between foreign participation and the 'Make in India' policy. Indian MSMEs may face increased competition, raising concerns about domestic manufacturing and the protective measures traditionally afforded to these enterprises.

(With inputs from agencies.)