Archive · 25 Jul 2025
India's Higher Procurement Bar for UK Firms to Shield MSMEs
India is making it a bit harder for British companies to get government contracts.
This is to help small and medium-sized Indian businesses.
The UK has a lower limit for the value of contracts, meaning British companies can compete for smaller contracts.
India's limit is much higher, which means British companies can only compete for bigger contracts.
The UK agreed to these different limits to help India with market access.
India has set a higher bar for British companies entering government procurement.
The UK's threshold for goods and services is SDR 130,000 (₹1.6 crores).
India's threshold is 3.5 times higher, at SDR 450,000 (₹5.5 crores).
This difference is to protect Indian Micro, Small, and Medium Enterprises (MSMEs).
The UK agreed to asymmetric thresholds in favor of India for market access.
- Who
- The Indian and British governments.
- What
- India has set a higher threshold for British companies to participate in government procurement.
- When
- The information is current, as per the provided article.
- Where
- India and the United Kingdom.
- Why
- To protect Indian MSMEs and as part of market access commitments.
- UK Threshold (Goods & Services)
- SDR 130,000 (₹1.6 crores)
- India Threshold (Goods & Services)
- SDR 450,000 (₹5.5 crores)
- Purpose of Thresholds
- Protect Indian MSMEs
- Agreement
- Asymmetric thresholds in favor of India for market access