Govt sourcing access key attraction in trade deals

The opening of India’s $52 billion annual government procurement business ona reciprocal basis while protecting Indian small and medium enterprises is a key feature of India’s trade negotiations with the United States and the European Union, people in the know said.

- Rajeev Jayaswal

The recently concluded India-UK free trade agreement (FTA) has a chapter on government procurementand the same template, with country-specific changes, could be applied in other two deals under negotiations, the people added, requesting anonymity. In order to protect micro, small and medium enterprises (MSMEs), government contracts below 2200-250 crore each may be kept out the purview of the trade agreements, the people said. And in an effort to protect domestic industry, companies from countries with which India has FTAs could be treated as so-called Class-II suppliers, they explained. Class-I suppliers will get the first priority in the award of bids. As per existing central gov