Latest news with #GovernmentProcurementAgreement
Hans India
24-05-2025
- Business
- Hans India
India likely to allow US firms to bid for govt contracts
New Delhi: India is opening up a chunk of its protected government procurement market to foreign firms, including the US, two government sources said, in a shift that could extend to other trading partners after it was offered to the UK under a trade deal this month. The government is likely to allow US firms to bid for contracts worth over $50 billion, mainly from federal entities, as it negotiates a trade deal with Washington, the sources said. Total public procurement - including by federal, state and local governments and state-run firms - is worth an estimated $700 billion-$750 billion per year, according to government estimates. Most is reserved for domestic firms, with 25% set aside for small businesses, although sectors like railways and defence can buy from foreign suppliers when domestic options are unavailable. Earlier this month, India and the UK agreed on a free trade pact that gives British firms access to federal government contracts in select sectors - covering goods, services and construction - on a reciprocal basis. "In a policy shift, India has agreed to open its public procurement contracts gradually to trading partners including the US in a phased manner and reciprocal manner," said one of the officials, with the knowledge of the matter. Only a portion of the government's procurement contracts - mainly linked to federal projects worth around $50-$60 billion - will be opened to foreign firms, while state and local government purchases will be excluded, the official said. "Following the UK pact, India is ready to open a part of its public procurement market to the US as well," said a second official. Both sources requested anonymity, as details of the ongoing talks have not been made public. The commerce ministry did not respond to requests for comment on the US proposal or extending the plan to other nations. India has long resisted joining the World Trade Organisation's Government Procurement Agreement, citing the need to protect small businesses. In its March report on foreign trade barriers, the US Trade Representative said India's restrictive procurement policies pose challenges for US firms due to "changing rules and limited opportunities." Indian Trade Minister Piyush Goyal visited Washington this week to advance trade talks, with both sides aiming to sign an interim agreement by early July, officials said. New Delhi is pushing to clinch a trade deal with the US within the 90-day pause on tariff hikes announced by US President Donald Trump on April 9 for major trading partners, which includes a 26% tariff on imports from India. The Commerce ministry said in a text message that UK firms would only be allowed limited access to bid for contracts of non-sensitive federal entities, excluding state and local government procurement. UK-based suppliers can bid for Indian tenders above 2 billion rupees ($23.26 million) while the UK will offer non-discriminatory access to Indian suppliers under its public procurement system, the ministry said. The government has assured small industry that a quarter of the orders will be reserved for them, said Anil Bhardwaj, secretary general of the Federation of Indian Micro, Small and Medium Enterprises (FISME), a leading industry body. "Opening procurement to foreign firms on a reciprocal basis offers an opportunity for Indian businesses in overseas markets as well," he said.
Mint
23-05-2025
- Business
- Mint
India to allow US firms to bid for govt contracts worth $50 billion in wider scope for foreign firms: Report
India is opening up a chunk of its protected government procurement market to foreign firms, including the U.S, two government sources said, in a shift that could extend to other trading partners after it was offered to the UK under a trade deal this month. The government is likely to allow U.S. firms to bid for contracts worth over $50 billion, mainly from federal entities, as it negotiates a trade deal with Washington, the sources said. Total public procurement - including by federal, state and local governments and state-run firms - is worth an estimated $700 billion-$750 billion per year, according to government estimates. Most is reserved for domestic firms, with 25% set aside for small businesses, although sectors like railways and defence can buy from foreign suppliers when domestic options are unavailable. Earlier this month, India and the UK agreed on a free trade pact that gives British firms access to federal government contracts in select sectors - covering goods, services and construction - on a reciprocal basis. "In a policy shift, India has agreed to open its public procurement contracts gradually to trading partners including the U.S. in a phased manner and reciprocal manner," said one of the officials, with the knowledge of the matter. Only a portion of the government's procurement contracts - mainly linked to federal projects worth around $50-$60 billion - will be opened to foreign firms, while state and local government purchases will be excluded, the official said. "Following the UK pact, India is ready to open a part of its public procurement market to the U.S. as well," said a second official. Both sources requested anonymity, as details of the ongoing talks have not been made public. The commerce ministry did not respond to requests for comment on the U.S. proposal or extending the plan to other nations. India has long resisted joining the World Trade Organisation's Government Procurement Agreement, citing the need to protect small businesses. In its March report on foreign trade barriers, the U.S. Trade Representative said India's restrictive procurement policies pose challenges for U.S. firms due to "changing rules and limited opportunities." Indian Trade Minister Piyush Goyal visited Washington this week to advance trade talks, with both sides aiming to sign an interim agreement by early July, officials said. New Delhi is pushing to clinch a trade deal with the U.S. within the 90-day pause on tariff hikes announced by U.S. President Donald Trump on April 9 for major trading partners, which includes a 26% tariff on imports from India. The commerce ministry said in a text message that UK firms would only be allowed limited access to bid for contracts of non-sensitive federal entities, excluding state and local government procurement. UK-based suppliers can bid for Indian tenders above 2 billion rupees ($23.26 million) while the UK will offer non-discriminatory access to Indian suppliers under its public procurement system, the ministry said. The government has assured small industry that a quarter of the orders will be reserved for them, said Anil Bhardwaj, secretary general of the Federation of Indian Micro, Small and Medium Enterprises (FISME), a leading industry body. "Opening procurement to foreign firms on a reciprocal basis offers an opportunity for Indian businesses in overseas markets as well," he said. ($1 = 85.9810 Indian rupees)
India Today
23-05-2025
- Business
- India Today
India plans to let US, other foreign firms bid for government contracts: Report
India is preparing to open a significant portion of its government procurement market to foreign companies, including US firms, in what officials describe as a strategic policy shift tied to ongoing trade senior government officials told news agency Reuters that contracts worth over $50 billion, primarily issued by federal agencies, could soon be accessible to US companies as part of a broader effort to strike a limited trade agreement with Washington by early move follows a similar concession made to the United Kingdom earlier this month under the India-UK Free Trade Agreement. British firms were granted access to select central government tenders on a reciprocal basis, signaling a shift in India's traditionally protectionist stance on public procurement. 'In a policy shift, India has agreed to open its public procurement contracts gradually to trading partners including the U.S. in a phased manner and reciprocal manner,' said one official familiar with the the total value of India's public procurement market is estimated at $700–750 billion annually, including spending by central, state and local governments, only federal-level contracts are expected to be opened up initially. State and municipal tenders will remain off limits for now, sources told the news development comes as trade minister Piyush Goyal concluded a visit to Washington aimed at accelerating bilateral talks. Both sides are hoping to finalise an interim deal before the 90-day tariff pause announced by President Donald Trump expires in US had threatened a 26% tariff on certain Indian imports if a deal isn't reached in has long resisted joining the WTO's Government Procurement Agreement, citing the need to shield domestic small businesses. However, officials stress that the new approach won't compromise that principle.A quarter of government contracts will remain reserved for Indian small businesses, said Anil Bhardwaj, secretary general of FISME, an industry group representing micro and small enterprises, told commerce ministry has maintained that any foreign access to procurement markets will be tightly controlled, limited to non-sensitive sectors, and matched with reciprocal access for Indian firms Indian exporters, this could open up new global tendering opportunities while giving New Delhi a bargaining chip in trade talks. 'Opening procurement to foreign firms on a reciprocal basis offers an opportunity for Indian businesses in overseas markets as well,' added Bhardwaj.
Time of India
23-05-2025
- Business
- Time of India
India likely to allow government contracts to foreign firms including US amid trade talks
India is preparing to open a significant portion of its protected government procurement market to foreign companies, including firms from the United States, two government sources said, marking a notable policy shift that could extend to other trading partners. This move comes shortly after India granted British companies access to select federal contracts under a new trade agreement earlier this month. According to the sources, US companies will likely be allowed to bid for contracts worth over $50 billion, primarily from federal entities, as New Delhi negotiates a trade deal with Washington, as reported news agency Reuters. Total public procurement in India—including purchases by federal, state, and local governments, along with state-owned enterprises—is estimated at $700 billion to $750 billion annually. Most of this market is currently reserved for domestic companies, with 25% specifically set aside for small businesses. Foreign suppliers are only allowed in limited sectors such as railways and defence when local alternatives are unavailable. "In a policy shift, India has agreed to open its public procurement contracts gradually to trading partners including the US in a phased manner and reciprocal manner," said one official familiar with the matter as quoted by Reuters. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Spacious 2, 3 & 4 BHK Homes at ₹88 L+* in Pune Dosti Greenscapes Learn More Undo The sources, who requested anonymity due to the sensitive nature of the negotiations, said only contracts linked to federal government projects—worth about $50-$60 billion—would be opened to foreign bidders. State and local government procurement will remain closed to overseas firms. "Following the UK pact, India is ready to open a part of its public procurement market to the US as well," said the second official. The Indian commerce ministry has not responded to requests for comment regarding the US proposal or the possibility of extending the initiative to other countries. India has historically resisted joining the World Trade Organisation's Government Procurement Agreement, citing the importance of safeguarding small enterprises. In a March report, the US Trade Representative flagged India's restrictive procurement rules as a key barrier for US companies, citing 'changing rules and limited opportunities.' Indian Trade Minister Piyush Goyal visited Washington this week to push forward trade discussions, with both sides aiming to finalize an interim agreement by early July. The talks follow a 90-day tariff pause announced by US President Donald Trump on April 9, which includes a 26% duty on imports from India. The Ministry of commerce clarified that under the UK trade deal, British companies will only be allowed to bid on contracts from non-sensitive federal entities, excluding state and local government procurement. UK suppliers can participate in tenders above 2 billion rupees ($23.26 million), while the UK will offer Indian suppliers non-discriminatory access to its procurement system. Anil Bhardwaj, secretary general of the Federation of Indian Micro, Small and Medium Enterprises (FISME), emphasized that Indian small businesses will still receive protection. "The government has assured small industry that a quarter of the orders will be reserved for them," Bhardwaj said. "Opening procurement to foreign firms on a reciprocal basis offers an opportunity for Indian businesses in overseas markets as well." Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
23-05-2025
- Business
- Business Standard
India may soon allow US, foreign companies to bid for govt contracts
India is opening up a chunk of its protected government procurement market to foreign firms, including the US, two government sources said, in a shift that could extend to other trading partners after it was offered to the UK under a trade deal this month. The government is likely to allow US firms to bid for contracts worth over $50 billion, mainly from federal entities, as it negotiates a trade deal with Washington, the sources said. Total public procurement - including by federal, state and local governments and state-run firms - is worth an estimated $700 billion-$750 billion per year, according to government estimates. Most is reserved for domestic firms, with 25% set aside for small businesses, although sectors like railways and defence can buy from foreign suppliers when domestic options are unavailable. Earlier this month, India and the UK agreed on a free trade pact that gives British firms access to federal government contracts in select sectors - covering goods, services and construction - on a reciprocal basis. "In a policy shift, India has agreed to open its public procurement contracts gradually to trading partners including the US in a phased manner and reciprocal manner," said one of the officials, with the knowledge of the matter. Only a portion of the government's procurement contracts - mainly linked to federal projects worth around $50-$60 billion - will be opened to foreign firms, while state and local government purchases will be excluded, the official said. "Following the UK pact, India is ready to open a part of its public procurement market to the US as well," said a second official. Both sources requested anonymity, as details of the ongoing talks have not been made public. The commerce ministry did not respond to requests for comment on the US proposal or extending the plan to other nations. India has long resisted joining the World Trade Organisation's Government Procurement Agreement, citing the need to protect small businesses. In its March report on foreign trade barriers, the US Trade Representative said India's restrictive procurement policies pose challenges for US firms due to "changing rules and limited opportunities." Indian Trade Minister Piyush Goyal visited Washington this week to advance trade talks, with both sides aiming to sign an interim agreement by early July, officials said. New Delhi is pushing to clinch a trade deal with the US within the 90-day pause on tariff hikes announced by US President Donald Trump on April 9 for major trading partners, which includes a 26% tariff on imports from India. The commerce ministry said in a text message that UK firms would only be allowed limited access to bid for contracts of non-sensitive federal entities, excluding state and local government procurement. UK-based suppliers can bid for Indian tenders above 2 billion rupees ($23.26 million) while the UK will offer non-discriminatory access to Indian suppliers under its public procurement system, the ministry said. The government has assured small industry that a quarter of the orders will be reserved for them, said Anil Bhardwaj, secretary general of the Federation of Indian Micro, Small and Medium Enterprises (FISME), a leading industry body. "Opening procurement to foreign firms on a reciprocal basis offers an opportunity for Indian businesses in overseas markets as well," he said. ($1 = 85.9810 Indian rupees)
