Public Procurement Standards: The government may increase local content requirements

The government plans to adjust its purchasing policy to boost domestic production. The industries department has floated a proposal to increase the minimum local content requirements for public procurement for Class I and II suppliers from 50 percent currently to 70 percent and 20 percent to 50 percent from now, respectively.

However, it has proposed exempting defense manufacturing, electronics and information technology, telecommunications, mines, railways, energy, ports and shipping and waterways from the increased limits, a senior government official told Business Standard, requesting anonymity.

“The inter-ministerial consultation process has begun. The departments and

First print: May 13, 2024 | 12:05 pm IST