Ministries baulk at giving large procurement contracts to foreign companies

Prefer Indian firms in sectors where domestic capability exists: NITI Aayog

A number of central ministries are refraining from awarding large procurement contracts to foreign companies in sectors where capabilities exist at home, a senior government official told Business Standard.  This is aimed at giving impetus to domestic manufacturing.

In line with the Centre’s previous directive barring global tenders from government procurement up to Rs 200 crore, the NITI Aayog has informally told all ministries to extend this to large contracts as well. 

“Where indigenous capability exists, it is better not to go for global tenders,” the government’s think tank is learnt to have told them.

Some ministries have started implementing the advice, while