India-UK Free Trade Agreement: A Game-Changer for Bilateral Public Procurement
Under a new free trade agreement (FTA), the UK will offer non-discriminatory treatment to Indian companies in its public procurement system, set to be implemented next year. The agreement grants UK firms access to India's public procurement market, while India permits British involvement only in non-sensitive sectors.
- Country:
- India
The landmark free trade agreement (FTA) between India and the UK marks a significant change in public procurement policies for both nations. Confirmed on May 6, the accord permits non-discriminatory treatment for Indian suppliers under the UK's public procurement system.
This agreement, effective next year, grants UK businesses unparalleled access to approximately 40,000 tenders in India's substantial procurement market, valued at £38 billion annually. However, UK firms remain excluded from contracts with Indian state government entities and local bodies.
The pact aligns with India's 'Make in India' initiative, supporting domestic manufacturing and MSMEs, while previously, India had opened its procurement segment to UAE firms with similar conditions. This trade pact stands as a testament to evolving international trade relations centered around mutual economic benefit.
(With inputs from agencies.)
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