There is a huge demand for the government tender. The tenders will be facing the foreign competitors. India is preparing to open up to $500 billion for the public procurement in the market. This will be a part of the free trade and the agreement negotiations.
The public procurements of the contracts are worth Rs.200 crore. This was opened in the FTA. The FTA was signed in the UAE in 2022. In the contract, there is a shift in the ruling Democratic Alliance. Now, there is a negotiation going on with the European Union which includes the UK and also includes the continent of Australia. The contract will also gain access to the public procurement market.
According to a government official from UK, “The UK and EU won’t negotiate with us if we keep the public procurement market out of the trade talks. Australia has asked for similar access as given to the UAE. The UAE deal is used as a yard stick by other countries. One has to understand that companies from the UK and EU will be able to come in high-tech areas, where requirements for technical standards are high”.
The experts have an advise for this too. The experts say that there is a challenge for the domestic small businesses with the current minimum amount being Rs.200 crore (only if this amount is maintained). There is a national treatment which has a trade agreement with the stiff competition of the small businesses. The Indian IT industry too has an access to the public procurement market in the EU and the UK. The real concern is that there is opposing in the inclusion of public procurement in the trade deal. There is no further change regarding the opposing and the concerned people owning small businesses.
The public procurement policy states that there are central ministries, department and public units to buy a total of 25% of the total annual purchases value which ranges from micros,small and medium enterprises will be continuing. There has to be a particular area where there is a principal who has the access. The public procurement is a huge market. This will help in gaining a better access.
The queries which were sent to the commerce ministry and the UAE Embassy via the EU office in New Delhi were unanswered during the press time.