Govt May Let Foreign Firms Bid For Contracts

India is opening up a chunk of its protected government procurement market to foreign firms, including the US, said two persons in the government, in a shift that could extend to other trading partners after it was offered to the UK under a trade deal this month.

- Reuters

NEW DELHI:

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 persons 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, as per government estimates. Most is reserved for domestic firms, with 25% set aside for small businesses, though sectors like railways and defence can buy from foreign suppliers when domestic options are unavailable.