Govt justifies leeway for UK, says $112-bn market opened for India

THE PUBLIC PROCUREMENT provisions of the India-UK Comprehensive Economic and Trade Agreement (CETA) will open up $122 billion worth of market for Indian companies without any discrimination, commerce secretary Sunil Barthwal said on Friday.

- MUKESH JAGOTA

"For the first time the UK has agreed to take a binding commitment to provide non-discriminatory treatment for Indian suppliers under the UK's social value regime," he said.

India's commitment under the agreement on public procurement would open up $114 billion market for the suppliers in the UK.

The UK's social value regime mandates that public sector bodies consider the wider social, economic, and environmental impact of their procurement activities beyond just financial cost.

This means they must evaluate how a supplier's work will improve the well-being of communities and the environment, not just whether it is the cheapest option.

"It is the second trade agreement that India has signed that has a chapter on government procurement. The first was the one signed with the United Arab Emirates (UAE) in 2022 but it has many restrictions.

In comparison, under the India-UK CETA, both the parties have offered meaningful market access to each other," another official said.