Government Procurement in India, Domestic Regulations & Trade Prospects

October 2012 | CUTS International

In India, public procurement is an activity “not merely for meeting day to day functional requirement, but also for underpinning various services that are expected from the government, e.g. infrastructure, national defence and security, utilities, economic development, employment generation, social services and so on.” India’s response was that highest levels in the government contemplated measures for tackling corruption and the Group of Ministers on Corruption was set up in 2010-2011. The GOM, inter alia, recommended the establishment of Committee on Public Procurement and the same was set up having representatives from major procuring departments of the Central Government. The Committee submitted its Report in June, 2011, which, inter alia, analysed the short-comings in the system and recommended the enactment of an overarching Public Procurement law. It is important (and surprising) to note that there is no central law on a subject which accounts for 25 to 30 percent of GDP of the Indian economy. This study has focused on several shortcomings of the existing system, the efficacy of the reform measures and the possibilities of further streamlining.

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