Overview

• The UK-India Free Trade Agreement grants British firms access to India's central government procurement market, estimated at $600 billion annually.
• Eligible UK suppliers can bid as Class II local suppliers for non-sensitive central-level contracts, requiring 20–50% local content.
• State and local procurement, along with environment and labor chapters, are excluded from the agreement's scope and dispute settlement mechanisms.
• Critics warn the move risks crowding out Indian MSMEs and diluting procurement preferences designed to promote domestic manufacturing and job creation.
• Indian firms do not receive equivalent access to the UK's procurement market, which remains highly restricted to foreign bidders.