Allaying fears that allowing UK businesses to participate in India’s public procurement sector under the India-UK trade pact may hurt local enterprises—especially MSMEs—Commerce Ministry officials have said that the decision will mutually benefit both countries.
The ministry clarified that Indian suppliers will be able to participate in the UK’s public procurement market, which is worth approximately $122 billion. In return, India opens up a procurement market estimated at $114 billion to UK suppliers.
The move will allow Indian suppliers to bid for contracts in the UK’s National Health Services (NHS) and other public sector bodies, including in sectors such as services, construction, and financial services. A Commerce Ministry note said the trade pact is expected to significantly boost NHS procurement of Indian APIs and high-end generic drugs, which currently account for 25% of NHS prescription drugs. NHS’ annual procurement spend stands at around $36 billion.
Indian suppliers will also be eligible to participate in procurements across major service sectors such as IT services, construction, financial services, and insurance.
Officials further noted that, for the first time, the UK has agreed to binding commitments to provide non-discriminatory treatment to Indian suppliers under its Social Value regime. “Indian companies will be treated on par with local suppliers,” an official said.