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India to Open $50 Billion in Federal Contracts to US Firms in Trade Deal Talks

The move builds on a recent UK trade pact, with protections for small businesses and state-level exclusions maintained.

A mobile crane carries a container at Thar Dry Port in Sanand in the western state of Gujarat, India, February 13, 2017. Picture taken February 13, 2017. REUTERS/Amit Dave/File Photo
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India to open $50 bn public procurement to American firms under new trade shift, claims report

Overview

  • India plans to allow US companies to bid on federal government contracts worth $50–60 billion as part of ongoing trade negotiations.
  • This marks a continuation of India's phased liberalization of its $700–750 billion public procurement market, following a similar agreement with the UK earlier this month.
  • The opening will be limited to central government contracts, excluding state and local tenders to protect smaller domestic firms.
  • A 25% reservation for small businesses will be preserved, ensuring continued support for India's micro, small, and medium enterprises (MSMEs).
  • India and the United States aim to finalize an interim trade agreement by early July, leveraging a 90-day US tariff suspension as a negotiation window.