India signals shift in procurement policy for global trade advantage

India is preparing to open up a significant slice of its $700 billion public procurement market to foreign firms, starting with the US, on a reciprocal basis. This follows a limited agreement with the UK granting access to select federal contracts.

This marks a departure from India's historically protectionist stance, with federal contracts worth over $50 billion potentially on the table. While small domestic firms will still retain 25% of contracts, multinationals could soon have entry points into a previously closed market.

Though state and local government tenders remain off-limits for now, the strategic direction is clear, India is aligning procurement with trade negotiations, using access as a bargaining chip to secure broader deals.

For global suppliers and governments alike, the message is unmistakable: procurement is now a tool of diplomacy, and the rules are evolving fast.

Read the full breakdown of India’s procurement shift and what it means for your strategy