Debate Sparks Over India-UK Trade Pact and Public Contracts

The Congress raised alarms over the India-UK free trade agreement allowing UK firms to bid on Indian government contracts, traditionally reserved for domestic companies. While participation is limited to non-sensitive sectors and exceeds Rs 200 crore, critics fear similar concessions may extend to other countries.

The Congress party has voiced apprehension regarding the implications of the India-UK free trade agreement, which permits UK firms to compete for Indian public contracts typically available only to domestic enterprises. These concerns were publicized by AICC General Secretary Jairam Ramesh via a social media post, highlighting a potential shift from India's longstanding stance against the WTO's Agreement on Government Procurement.

The agreement allows UK companies to partake in certain public procurements in India, specifically those over Rs 200 crore and classified as non-sensitive sectors. However, UK firms are prohibited from bidding on procurements managed by state government entities and local bodies. Furthermore, the agreement mandates non-discriminatory treatment for Indian companies in the UK's public procurement system, a first for such trade negotiations.

This development parallels a similar provision made between India and the UAE, where the UAE-based firms gained access to India's government procurement market for tenders exceeding the Rs 200 crore threshold. India's modified procurement norms from 2020 had preferred goods and services with at least 50% local content, reinforcing the 'Make in India' initiative, which now faces fresh challenges under these global trade pacts.

(With inputs from agencies.)