• Date: Apr 2015

If Bhutan is in doubt about the significance of public procurement and its potential to drive growth, perhaps a look at our neighbor would help clear our doubts. CUTS International believes an efficient public procurement regime in India has the potential to contribute at least one per cent additional growth to the Indian economy and generate five million additional employment annually over the next ten years.

India currently does not have a public procurement policy, and there has been no concrete action from the India Parliament on the Public Procurement Bill 2012. Though the intention to fulfill social objectives through offsets was clearly spelt out in the Public Procurement Bill, 2012, CUTS argue for a policy to precede the law in order to:

  1. encourage the growth of Indian manufacturing, particularly that of micro, small and medium enterprises
  2. move to green and sustainable procurement
  3. incorporate mechanisms to benefit disadvantaged classes of the Indian society
  4. facilitate the implementation of other major macro-economic policies such as fiscal policy, competition policy, trade policy including in respect to their linkages with public procurement.


India might be on the road to adopting a national public procurement policy. About 70 stakeholders, representing the Federation of Indian Chambers of Commerce & Industry and other bodies including the MSME sector actively participated in a consultation meeting on public procurement last month (March 2015), signifying the importance of addressing the core issues of ensuring better transparency, probity, competition and innovation in the Indian public procurement regime so that there is a better system of economic governance enhancing the quality and efficiency of the country’s growth and generating new employment opportunities.

According to the important stakeholders present at the meeting, such a policy will not only aid good implementation of the proposed legislation but will also help improving the country’s fiscal regime and can be an effective tool to achieve various socio-economic objectives as the Indian economy progresses.

CUTS (Consumer Unity & Trust Society) is an international NGO and think-tank working on Trade, Regulations and Governance and championing consumer empowerment in economic and development policy. CUTS International is currently exploring necessary elements of a National Procurement Policy of India and their interfaces with other major macroeconomic policies to frame a draft Policy and advocate for its adoption and implementation.

Full press release by CUTS International is available here: http://www.cuts-citee.org/NPPPI/Press_release-Public_procurement_should_...



Related Work

Forum on Sustainable Consumption in Thimphu

20 Mar 2014 - Laura Turley a

Sensitising suppliers on green public procurement

On 23rd August 2016, GPP Bhutan delivered a Se

Training Procurers to Buy Green

In transitioning towards gre