FTA: Congress fears UK firms will be allowed to bid for public contracts of Indian govt

New Delhi, May 23 (PTI) The Congress on Friday expressed concerns that UK firms would be allowed to bid for public contracts of the government in India that would otherwise be open only for domestic companies as part of the India-UK free trade agreement.

In a post on X, AICC general secretary Jairam Ramesh said India had stoutly resisted joining the WTO's Agreement on Government Procurement for more than 30 years.

"But now it appears that as part of the India-UK FTA (free trade agreement), UK firms will be allowed to bid for public contracts floated by the Union government that would otherwise have been open only to Indian companies. Having opened this window, US companies also will be beneficiaries," he said in his post.

As part of the FTA, India has agreed to allow UK companies to participate in public procurement only in non-sensitive sectors.

UK firms, however, will not be allowed to participate in procurement by state government entities and local bodies.

UK-based suppliers will be allowed to bid for domestic tenders above the agreed threshold (above Rs 200 crore) as deemed Class II local suppliers under public procurement.

The UK, for the first time, has agreed to accord non-discriminatory treatment to Indian companies in its public procurement system.

Under the UK's social value law, its government departments require public authorities to have regard to economic, social and environmental wellbeing in connection with public services contracts.

Earlier, India opened the government procurement segment in the comprehensive trade pact with the UAE. Under that pact, UAE-based firms are allowed to participate in procurement tenders worth over Rs 200 crore.

In 2020, the government modified public procurement norms to give maximum preference to companies whose goods and services have 50 per cent or more local content to promote 'Make in India'. PTI SKC SKC ARI ARI

Source: PTI