Introduction

This chapter examines the pros and cons of accession to the WTO Agreement on Government Procurement (GPA) by India. This discussion is of relevance since, despite consistently resisting pressure to negotiate government procurement provisions in its regional and bilateral trade agreements, in February 2010 the Government of India became an observer to the GPA. India's decision to be a GPA observer comes at a time when interest in the GPA appears to be growing and signals that major developing countries such as India are assessing their interests in relation to GPA accession.

In the light of India's recent decision, this chapter puts forward a critical assessment of accession to the WTO GPA from the Indian perspective. It first provides an overview of the development of existing policies and institutional structures in the area of government procurement before discussing the significance of GPA accession for India. While there may be both real and potential gains for India, there are also risks and costs. Challenges will arise when negotiating the scope and coverage of the commitments and in crafting appropriate transitional measures. India is a country with large state-owned enterprises and sectors and any effective negotiating strategy will have to consider systemic questions concerning the appropriate application of GPA disciplines to such enterprises.