Trade deals could squeeze Make in India's public procurement edge (opens the source in a new tab)
- Retired Government of India secretary Aruna Sharma argues that opening government buying to foreign suppliers under trade deals could clash with Make in India preferences that help local makers, especially MSMEs. Dairy and textiles may be most exposed.
- She notes the EU has long pushed to bring procurement under non-discrimination rules, and that past deals did not always give India equal access in return; India has used safeguards against import surges, including from South Korea.
- Deals with the UK, EFTA and the UAE show procurement is now on the table. She wants any opening tied to real reciprocity, investment and technology transfer, with care in railways, energy, space and defence.
Why it matters Government buying is one of India's strongest levers for factory jobs. How much of it is traded away in talks with the EU, the US and others will decide whether MSMEs keep a home market or meet foreign rivals in it.
Other side Local-preference rules can also mean higher prices and weaker competition for taxpayers. Opening tenders may be the price of wider access for Indian exporters, and foreign bidders could bring better technology. Is shelter or competition the faster route to capability?
Source:Mint (free to read) ↗