With India-UK Free Trade Agreement (FTA) talks concluded, India to introduce global tendering for public procurement

India is set to introduce global tendering features on its Government e-Marketplace (GeM) portal, allowing international firms, including United Kingdom (UK) ones, to bid for government tenders. This move follows the successful conclusion of the India-UK Free Trade Agreement (FTA). The GeM platform, used by state and central government departments to buy and sell goods and services, currently does not support global tendering. Once these features are added, foreign suppliers can participate in tenders floated by Indian government buyers. A 'rate contract' option will also be introduced, allowing government buyers to purchase goods and services at pre-approved prices for a fixed duration, reducing the need for repeated bidding. The platform targets transactions worth Rs. 7,00,000 crore (US$ 81.83 billion) in FY26, up from Rs. 5,42,000 crore (US$ 63.36 billion) in FY25. Currently, 40-50% of annual government procurement is conducted through GeM.
The UK government's policy paper states that India has granted "legally guaranteed access" to its vast government procurement market under the FTA, enabling British businesses to bid for around 40,000 Indian government tenders annually, valued at an estimated Rs. 3,800 crore (US$ 444 million). However, the Global Trade Research Initiative (GTRI) has cautioned that allowing UK firms to participate in India's central government procurement tenders could potentially crowd out Indian micro, small, and medium enterprises (MSMEs), which depend heavily on preferential access to such contracts. Under the deal, British firms with at least 20% UK content will be classified as class two local suppliers under India's Make in India policy, effectively extending preferential treatment to foreign suppliers.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.