Under the newly established India-UK free trade agreement, around $38 billion in government contracts are now accessible to UK businesses, specifically in key sectors. Despite this opportunity, UK firms must navigate significant challenges including competitive pricing, delayed payments, and complex procurement processes that have historically favored local suppliers.
UK Firms Eye $38 Billion Indian Government Contracts Amidst Challenges
UK Firms Eye $38 Billion Indian Government Contracts Amidst Challenges
UK companies are looking to secure a significant share of Indian government contracts as part of the recent trade agreement, but face various hurdles.
UK firms have been granted unprecedented access to India’s government procurement, allowing them entry to 40,000 tenders across strategic areas like transport and green energy—a move viewed as a major shift in policy by experts. While these companies can now compete nearly on equal footing with Indian suppliers and bid on lower-value projects, they face persistent issues such as higher pricing and arduous contract enforcement.
Experts highlight that while the agreement aims to increase transparency and open doors for UK firms, significant hurdles remain including the risk of delayed payments which have historically affected payments to suppliers within India’s public procurement. The Indian government has been making efforts to streamline operations but challenges persist, and UK firms will need to adapt to the complexities of engaging with India’s tender processes.
Additionally, the shift marks a broader move by India to attract foreign investment while also showing confidence in local enterprises to compete with global giants. The expectation is that an influx of foreign participants may lead to improvements in standards of accountability and efficiency in India’s public procurement system.
Experts highlight that while the agreement aims to increase transparency and open doors for UK firms, significant hurdles remain including the risk of delayed payments which have historically affected payments to suppliers within India’s public procurement. The Indian government has been making efforts to streamline operations but challenges persist, and UK firms will need to adapt to the complexities of engaging with India’s tender processes.
Additionally, the shift marks a broader move by India to attract foreign investment while also showing confidence in local enterprises to compete with global giants. The expectation is that an influx of foreign participants may lead to improvements in standards of accountability and efficiency in India’s public procurement system.
