ANNOUNCEMENT 16 Feb 2021

India has restricted the public procurement of certain medical devices only from local suppliers.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 16 Feb 2021 | Removal date: open ended

Public procurement localisation

On 16 February 2021, the Indian Ministry of Chemicals and Fertilizers (Department of Pharmaceuticals) notified through an Order that for certain medical devices where there is sufficient local capacity government orders must be placed from Class-I local suppliers. This is regardless of the procurement value, provided that the Minimum Local Content (MLC) requirements have been met. Class-I suppliers are those that have a local content of at least 50% of the manufactured good.

This announcement was made under the Public Procurement (Preference to Make in India) Order 2017. The policy requires that for government procurements with an estimated value of less than INR 5 million, and for sectors where there is sufficient local supply and competition, only local suppliers will be eligible for state contracts. But for values above INR 5 million, or where there isn't sufficient local supply, both local and non-local suppliers will be eligible (see related State Act). By notifying that there is sufficient local capacity for these products, future public procurement of these goods will only be done through local suppliers.

On 25 March 2021, a similar order was passed for an additional 19 medical goods.

 

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