New Delhi opens govt procurement to UK companies

For the first time, India will open approximately 40,000 high-value contracts from central ministries and departments in sectors such as transport, green energy and infrastructure to UK bidders. UK-origin goods with just 20% domestic content will be treated as 'Class II' local suppliers under India's Public Procurement Order (PPO), a classification previously reserved for Indian suppliers with 20-50% local content under the CETA.

India will offer concessions in government procurement to UK firms under the free trade agreement, a move experts see as a strategic shift away from using public procurement as a tool for domestic industrial development. After the UAE, India has opened its central government procurement for British companies, subject to certain conditions.

"The GP chapter provides a legal guarantee for Indian suppliers to be treated on par with UK suppliers regarding social value considerations within procurement processes, ensuring a level playing field for Indian businesses to compete fairly," said an official.