Draft Procurement Act 2023 (Specified International Agreements and Saving Provision) (Amendment) Regulations 2026

Chris Ward Excerpts

Monday 9th March 2026 General Committees

[The Parliamentary Secretary, Cabinet Office (Chris Ward)]

I beg to move,

That the Committee has considered the draft Procurement Act 2023 (Specified International Agreements and Saving Provision) (Amendment) Regulations 2026.

It is a pleasure, as always, to serve under your chairmanship, Sir Desmond. The purpose of this statutory instrument is to implement the procurement chapter of the UK-India comprehensive economic and trade agreement via an amendment to the Procurement Act 2023.

The UK-India CETA was signed on 24 July 2025. It is one of the most significant and ambitious bilateral trade agreements that the UK has concluded since leaving the EU. India is of course one of the economic heavyweights of the 21st century and is likely to become the third largest global economy by the end of this decade. Our trade with India is already worth £47 billion a year, up 15% year on year, and it is of course a market with huge and growing demand for imports, presenting major opportunities for British businesses and procurement.

However, India’s markets are also behind some of the highest trade barriers in the world, locking out many British businesses. The deal we have secured knocks down many of those barriers and goes well beyond India’s agreements with other countries. Indeed, it opens the door for British businesses on an unprecedented basis, especially in respect of Government procurement.

The procurement chapter will unlock around £38 billion a year of contracts in sectors such as advanced manufacturing, healthcare, construction, infrastructure and clean energy. For the first time, UK companies will be able to compete for those contracts. Alongside that, we are gaining access to India’s procurement portal, providing a line of sight for British businesses on a huge and growing market. Under the terms of the agreement, British businesses will have access to procurements above £478,000 for goods and services, and £5.3 million for construction services.

We have also gained exclusive treatment for UK bidders to be treated as class 2 suppliers under the Make in India policy. This will apply if at least 20% of the product or service is from the UK or India. That will give British companies a significant competitive advantage, as it goes beyond anything negotiated by others. We have also achieved commitments on fairness, openness and transparency, including the use and accessibility of e-procurement systems, and we have agreed requirements for the publishing of notices and awards of contracts and domestic review procedures for businesses to challenge should the chapter’s rules not be followed correctly.

Our agreement is also significantly stronger than the political agreement the EU has now reached with India. In particular, we have negotiated unique access to India’s £38 billion federal procurement market, something the EU has not obtained. The EU also does not have any agreement relating to class 2 status under the Make in India policy.

Those are the benefits of the agreement legislated for in the regulations; I will turn briefly to the process for introducing them. As Committee members will know, the regulations were laid on 19 January in order to bring the trade agreement into force as quickly as possible while allowing for parliamentary scrutiny under the proper process. They will update schedule 9 to the Procurement Act 2023, implementing in domestic law the UK’s procurement obligations in the agreement. Suppliers entitled to benefit from it will be considered “treaty state suppliers” under section 89 of the Act, which will provide them with equal access and rights in UK public procurement as are afforded to UK suppliers. In turn, the agreement requires India to provide comparable access to UK suppliers.

The Procurement Act 2023 (Commencement No. 3 and Transitional and Saving Provisions) Regulations 2024 are also being amended to ensure that the UK’s obligations under the agreement apply in relation to contracts that can still be entered into under the previous procurement regime.

The territorial application of these regulations in relation to contracts under the 2023 Act extends to England and Northern Ireland. It also extends to Scotland and Wales, but not in respect of procurement carried out by a devolved Scottish authority or regulated by the Welsh Ministers. The Welsh Government, with whom we have been in discussion, are making a separate SI to implement this agreement. It was laid in the Senedd on 10 February and is scheduled for debate on 10 March and due to enter into force on 31 March, the day after these regulations.

The Scottish Government are implementing the agreement separately under their own legislation, which was laid before the Scottish Parliament on 7 January and considered by the Economy and Fair Work Committee on 4 February. The Scottish Parliament approved the SI on 18 February, and it will enter into force on 24 March. The territorial application of this SI in relation to contracts under the previous procurement regime extends to England, Wales and Northern Ireland.

The procurement chapter unlocks unprecedented access to India’s federal procurement market. It covers access to approximately 40,000 tenders per year worth at least £38 billion per annum. It is good news for British businesses and our economy, and I hope hon. Members will join me in supporting these regulations.

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[Chris Ward]

I am grateful for the spirit in which the debate has been carried out.

The hon. Member for Kingswinford and South Staffordshire rightly mentioned that the regulations build on the Procurement Act passed under the last Government. That is a good thing, although we will set out plans shortly to improve it. He is quite right that nothing in the regulations affects the national security powers, and that the regulations tidy up contracts completed prior to the Procurement Act—that is why they are important.

On business engagement and impact assessment, this is really about getting a foot in the door of the Indian market for UK businesses, and it is very hard to model the impact of that at this stage. It is a large and growing market, with huge demand for imports. Until we gain access, as we have done, to the procurement portal and are established in the market, it is hard to know the exact material economic benefits, but obviously we hope that this will be a first step in that. As I say, it is a foot in the door that is greatly welcomed. I should point out that the Department for Business and Trade is working incredibly hard on business engagement in India. We have a team on the ground there to try to maximise this and capitalise on it as much as possible, and they are working really closely with British businesses to make sure that they can do that.

In terms of application, the regulations come into force on 30 March. The Constitutional Reform and Governance Act 2010 process has been completed on the broader trade deal, so this will align with that. As I said, our aim is for the agreement to come in as quickly as possible.

On the point raised by the hon. Member for Hazel Grove about services and the ambitious nature of the deal, we estimate that the agreement is worth around £5 billion a year to the UK economy. For an individual trade deal, that is very significant; as I say, it is more ambitious than a lot of the deals that have already been completed, and it is the first type of deal like this that the Indian Government have agreed.

While none of us is in the mood to relitigate Brexit, or talk through that too much, I will make two minor points. First, Britain has negotiated a stronger deal than the EU. As I said, the EU has not gained the same arrangements around the Make in India policy and treatment of suppliers as class 2, and it has not gained access to the procurement portal in the same way that we have, so our deal is materially better. Secondly, I gently say that if the Liberal Democrats want to enter a new customs union, they should know that any free trade deal that we did on that basis would not be an independent free trade deal; it would be a trade deal agreed by the EU, and it would be on qualitatively inferior terms, because the EU has just negotiated its deal and ours is stronger. There is a consequence to the position that the Liberal Democrats take. I hope that helps; if there are points that I have missed, I will write with further detail.

In conclusion, this agreement is a major milestone in our relationship with India, a vast and growing economy that we hope British businesses can contribute to as much as possible. Implementation of the procurement deal is a big step forward for us, and I hope colleagues will join me in approving the regulations.

Question put and agreed to.