However, industry experts warn of potential challenges. Despite gaining the status of Class-II local suppliers, UK firms still face fierce competition from Indian companies, which hold Class-I status and enjoy preferential treatment. Price competitiveness is a significant concern, as UK companies often have higher costs than their Indian counterparts. Additionally, issues like delayed payments and challenging contract enforcement remain, with a 2020 World Bank report ranking India 163rd out of 190 nations in contract enforcement measures.
While the agreement emphasizes transparency in procurement, it fails to address existing concerns of pending dues and regulatory complexities, underscoring the need for UK companies to adapt to the nuances of the Indian market. Overall, this policy shift indicates India’s intent to integrate foreign competition into its procurement frameworks, potentially benchmarking standards against global norms and signaling greater accountability from its own suppliers.
While the agreement emphasizes transparency in procurement, it fails to address existing concerns of pending dues and regulatory complexities, underscoring the need for UK companies to adapt to the nuances of the Indian market. Overall, this policy shift indicates India’s intent to integrate foreign competition into its procurement frameworks, potentially benchmarking standards against global norms and signaling greater accountability from its own suppliers.
