India-UK FTA to Enable Participation in Government Procurement
Following the implementation of the India-UK Free Trade Agreement (FTA), suppliers from India and the United Kingdom will be able to participate in each other’s government procurement processes. This provision is expected to benefit India more significantly.
Why India Stands to Gain More?
India has allowed British suppliers access only to limited central government procurement of non-sensitive goods. However, Indian suppliers will be able to bid in all types of government procurement across the UK. Indian companies will receive equal treatment as UK companies in terms of bidding, supply, and services.
Moreover, the Indian government will continue to give preference to domestic MSMEs in its own procurement processes, ensuring a balanced approach.
Where Can UK Suppliers Participate?
Under the FTA, UK suppliers can only participate in non-sensitive goods procurement by India's central government departments. They will not have access to procurement by PSUs (Public Sector Undertakings), state departments, or other autonomous institutions.
Indian Suppliers' Opportunities in the UK
Indian suppliers can bid for tenders issued by major UK institutions such as:
- The UK Cabinet Office
- Department for Business and Trade
- National Highways
- Department of Health and Social Care
- Department for Education
Additionally, the agreement opens up opportunities in service supply — which is especially advantageous for Indian IT service providers.
Could This Influence Future Trade Deals?
Trade experts have noted that the inclusion of government procurement in this FTA could set a precedent. For instance, the United States may demand similar access in any future trade deal with India.