IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

state-controlled

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 24 May 2017 | Removal date: open ended
Still in force

Public procurement access

The policy for purchase preference for local content in government purchases gives preference to local suppliers that meet the minimum thresholds for local content in their goods and services. The policy applies to all government procurements including ones by autonomous bodies, companies and entities under the government's control.

The policy differentiates implementation restrictions on the basis of the quantum of the contract, as below -

  • For government procurement of INR 5 million or less in areas where it is determined by the concerned ministry that there is sufficient local capacity and competition, only local suppliers will be eligible to supply.
  • For government procurement of INR 5 million and more or where sufficient local capacity and compeition doesn't exist, if the lowest bid is from a non-local supplier and if there is a bid from a local supplier that is within a margin of 20% from the lowest the bid, then the local supplier will be given an opportunity to match the lowest bid. Further, in case the local supplier matches the lowest bid, it will get to supply a) 100% of the procurement if the procurement is non-divisible or b) 50% of the procurement if the procurement is divisible, where the contract of the rest 50% will be given to the non-local supplier.
  • Government procurement of less than INR 0.5 million has been exempted from the order.

AFFECTED COUNTRIES

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