India’s recent free trade agreement with the UK is a daring policy shift, as Indian government procurement, which is worth £38 billion, was opened to UK firms for the first time, and included a number of high-value, strategic contracts – transport, renewable energy, infrastructure, etc. – where Indian firms already have significant comparative advantages.
By providing near-equal bidding rights to UK suppliers, India clearly signaled that it is confident that Indian firms can compete directly with global suppliers, not only in India but also on the global procurement stage. This decision also clearly shows that New Delhi is interested in establishing new precedents with key partners in trade policy, pursuing an even-handed approach while protecting India’s national interests through continuing Indian- preferential treatment of bidders.
More importantly, when viewed through the larger geopolitical lens, this positioning gives India the space to act not just as a growing economic power, but as an economic power that is willing to impose Regulative Trade usages that are normative not just to itself, but to the global context. This FTA could give India leverage in future negotiations with not only the US and EU, but their important Indo-Pacific partners, advancing access to the procurement market, whilst also presenting India’s own global leadership role in establishing norms regarding fair and transparent public procurement standards.
For India, the real victory is not just to secure foreign bids but to take advantage of international competition to stimulate efficiency, ensure accountability, and upgrade its industries to a world-class level – winning strategic and economic dominance in the long term.
