ANNOUNCEMENT 05 Oct 2012

In October 2012, the government of India announced a change in the local input requirements for the participation in certain public purchases.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 05 Oct 2012 | Removal date: open ended
Still in force

Public procurement localisation

 On 5 October 2012, the Ministry of Communications and Information Technology added 23 Information Technology (IT) products to the list of manufactured electronic goods where a preference is given to domestic products in procurement by government minsitries due to security considerations.

The Notification specifies the minimum percentage of required domestic procurement (Preferential Market Access-PMA), the percentage of the total value added that qualifies the product as domestically manfuactured and the inputs and processes that will be considered for assessing whether the product is classified as domestically manufactured.

The PMA for domestically manfuactured specified IT products ranges from 50% to 100%, while the percentage value addition required for the products to be classified as domestically manufactured ranges from 25% to 45%. Both PMA and value added requirements increase every year as specified in the Notification.