Govt approves public procurement policy for local suppliers Back to News & Events List

The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved a policy for providing preference to 

local suppliers in government procurement.
The new policy is expected to encourage 'Make in India' and promote manufacturing and production of goods and services in 

India with a view to enhancing income and employment, said a cabinet communique.
Under the policy, preference in government procurement will be given to local suppliers. Local suppliers are those whose 

goods or services meet prescribed minimum thresholds for local content, it said.
In procurement of goods for Rs. 50 lakhs and less and where the nodal Ministry determines that there is sufficient local 

capacity and local competition, only local suppliers will be eligible.
For procurements valued at more than Rs 50 lakh or where there is insufficient local capacity/ competition) if the lowest 

bid is not from a non-local supplier, the lowest-cost local supplier who is within a margin of 20 per cent of the lowest 

bid, will be given the opportunity to match the lowest bid, the statement said.
In fact, procurement by the government is substantial in amount and can contribute towards this policy objective.
Local content can be increased through partnerships, cooperation with local companies, establishing production units in 

India or Joint Ventures (JV) with Indian suppliers, increasing the participation of local employees in services and by 

training them.

Original Source:

Recent News


Pomegranate exports likely to run into EU roadblock

With a bumper pomegranate season in full swing, around 85,000 tonne is expected to be exported during 2018-19 season. However, several countries including Europe, Russia, Ind...


Trade war: Government sees space for Indian exporters in US

The commerce department is sensing an opportunity for exporters in the US due to the trade war with China and has identified close to 180 items where Indian players can take ad...


Brazil and India increase business contact in agriculture and food sector

The Brazilian companies are expected to reach approx $80 mn in businesses in the food and agriculture sector over the next one year. Nine out of 20 companies which are visiting...


Twenty-nine food safety labs in 25 states & UTs taken up for upgrades

Under the Central sector scheme of lab upgrades, 29 state food safety laboratories in 25 states and Union Territories (UTs) have been taken up so far for upgrades, while FSSAI ...