India Shifts Procurement Strategy, Offering Major Concessions to UK Firms Through Trade Pact
India's new trade agreement with the UK marks a significant shift in its government procurement policy, allowing British firms extensive access to contracts. Seen as a move away from domestic industrial focus, the agreement permits UK companies to bid on procurement under relaxed local content rules, potentially setting new precedents.
- Country:
- India
In a groundbreaking move, India has agreed to offer unprecedented concessions to UK firms in government procurement under a recently inked free trade agreement. Experts see this as a strategic pivot away from the traditional use of public procurement as a domestic industrial development tool, signaling a new phase in Indo-British trade relations.
The Comprehensive Economic and Trade Agreement (CETA) signed in London, witnessed by Indian Prime Minister Narendra Modi and British Prime Minister Keir Starmer, allows UK companies to bid for government contracts. These firms, with as little as 20% UK content, can now be categorized as Class 2 Local Suppliers under the Make in India initiative.
This significant policy shift could serve as a blueprint for future trade agreements with larger economies, challenging India's historical protectionist policies and impacting employment, domestic capacity-building, and import substitution strategies.
(With inputs from agencies.)
Google News