Government Procurement, also called public tendering or public procurement, is the practice of

purchase of goods and services and technologies by a government and public entities to
accomplish the needs of public authority to carry out its accountability towards citizens. It is of
immense potential interest for most developing and developed countries, as it accounts for a
considerable proportion of GDP i.e. around 20% to 30% of Gross Domestic Product (GDP) of
government procurement. Along with the value for money, it seeks to achieve the welfare
objectives of a country. The process of procurement requires the procuring authority to issue
public tenders if the value of the procurement exceeds a certain threshold.
But the prevalence of discrimination in this area of Government procurement, as well as other
practices, creates considerable barriers to trade, eventually impacting unfavorably the countries
growth and their GDP.
Therefore , this project is to comprehend the history and evolution of government procurement
along with role of WTO with regards to government procurement as well as the challenges that
exist in Government procurement and gives an overview of the need for and the features of an
appropriate instrument to govern Government procurement policies. It further seeks to address
the Indian scenario related to it and also enlighten competition concern relating to government
procurement as well as E-procurement opportunities and challenges.

KEY WORDS- Government Procurement, Challenges, Competition, E-Procurement.

SYNOPSIS:-

1.

Statement of problem:The GPA is a plurilateral agreement within the outline of the WTO. Government agencies
often need to purchase goods and services with public resources and for public purposes
to fulfill their functions. Such purchases are generally referred to as government/public
procurement. Achieving 'value for money' is a primary endeavor of most procurement
regimes by the method of Open, transparent and non-discriminatory procurement.
There are competing policy goals; many governments also make use of government
procurement to accomplish other domestic policy goals, such as the endorsement of
specific local industry sectors or social groups.
At the same time, providing privileged treatment for domestic goods, services and
suppliers discriminates against foreign suppliers and therefore acts as a trade barrier in
this sector. Hence, the main problems faced which are needed to be prevented are
deception, waste, corruption, or local protectionism.

2. Survey of Existing Literature:a. Simon J. Evenett & Bernard M. Hoekman, Government Procurement: Market
Access, Transparency, and Multilateral Trade Rules (World Bank Policy Research
Working Paper 3195 2004).
This paper examines the effects on national welfare and market access of two
public procurement practices, discrimination against foreign suppliers of goods
and services and non-transparency of the procedures used to allocate government
contracts to firms. Both types of policies have become prominent in international
trade negotiations, including the Doha Round of WTO trade talks. This paper
assesses and compares the impact of eliminating discrimination and fostering
greater domestic competition in procurement markets and enhancing transparency
in state contracting.
b. Albert Snchez Graells & Ignacio Herrera Anchustegui, Impact of Public
Procurement Aggregation on Competition. Risks, Rationale and Justification for the
Rules in Directive 2014/24 (Univ. of Leicester School of Law Research Paper No. 1435).

This paper assesses the risks, rationale and justification for the rules on
centralization and aggregation of public procurement in Directive 2014/24. The
paper explores the justifications advanced for the aggregation of purchasing and
the countervailing risks it generates.

c. Kamala Dawar & Simon J. Evenett, GOVERNMENT PROCUREMENT.

The purpose of this paper is to describe what is known concerning public
procurement provisions in PTAs and what factors ought to be taken into account
by policy makers and analysts as they evaluate policy options in this area.
Although an effort is made to draw appropriate policy implications, the findings
are largely tentative and will need to be revised in the light of new evidence and
changes in thinking as to what constitutes effective public procurement policy.
d. THE WTO REGIME on GOVERNMENT PROCUREMENT: CHALLENGE and
REFORM (SUE ARROWSMITH & ROBERT D. ANDERSON eds., Cambridge
Univ. Press 2011).
The present volume focuses on the challenges that exist in seeking to develop
effective disciplines on procurement within the WTO and on current and potential
efforts to address these challenges.
e. 'Public Procurement Reforms to Enhance Value for Money', 16th November 2009,
http://saiindia.gov.in/sites/default/files/6publicprocurementreforms15_12_09pdf.
This paper, therefore, will start with discussing the concept of public procurement
and their importance in overall Governance. It will also study, albeit in nutshell,
the institutionalization of procurement rules by the Government through manuals
and rule books. The paper will then seek to identify some of the common
problems and shortcomings in the present procurement system. Finally, the paper
will examine the recent initiatives to see if they are sufficient in having a healthy
and transparent procurement regime.

f. Anirudh Shingal, Internationalization of Government Procurement Regulation: The

Case of India (European Univ. Institute, Florence 2014) [hereinafter Paper for the
Internationalization of Government Procurement Regulation Conference].
This paper provides a case study of the internationalization of procurement
regulation in the context of India.
g. Panda, P., Sahu, G.P. & Gupta, P. (2010). Promoting Transparency and Efficiency in
Public Procurement: E-Procurement Initiatives by Government of India. 7th
International Conference on E-Government (ICEG) 2010, 22-24 Apr 2010, IIM
Banglore, India.
The purpose of this paper is to study various e-procurement initiatives of
Government of India and ascertain the importance of these measures in public
procurements. The paper also aims to explore the ways in which these eprocurement initiatives would result in cost savings to exchequer by increasing
operational

efficiency,

transparency,

competition

among

bidders

and

organizational effectiveness during the recessionary times, especially through

automation of manual processes.
h. Dr. S Chakravarthy, Benefits of Competition Policy in Public Procurement with
Special Reference to India (Manupatra 2015).
The article attempts to identify several areas of procurement policy in India that
could benefit from the transparent rule based system such as that provided by the
WTO GPA. Government of India is understood to have identified tangible
benefits from accession to WTO GPA. India is committed to improving its
procurement markets and to underpin its reforms, as a first step, has chosen to
become a GPA observer.
a. Identification of Issues:Major issues which are involved in government procurement are as follows:a. Transparency
b. Corruption
c. Foreign participation
d. Competition concerns

b. Objective and scope of research:Main idea of the research is to comprehend the opportunities and challenges faced in
government procurement and role WTO in government procurement. This project will
also draw attention to transparency as well as competitive aspects of government
procurement. Further, it will analyze government procurement in Indian scenario along
with new promising aspect of E- Government Procurement.
c. Research Methodology:An analytical methodology is adopted for carrying out studies regarding the project.
d. Probable outcome:Government procurement is of immense potential interest for most developing and
developed countries, as it accounts for a generous proportion of GDP. But the occurrence
of discrimination in this area of Government procurement, as well as other practices,
creates significant barriers to trade, ultimately impacting adversely the countries growth
and their GDP. Basically, barriers to efficient and sustainable development are
acknowledged as corruption and transparency, foreign participation in public
procurement.

e. Chapterisation:a. Introduction
b. History and Development of Government Procurement
c. Role of WTO and Government Procurement
d. Issues in Public Procurement
Transparency
Foreign Participation
e. Competition Concern in Procurement in India
f. E-Government Procurement
g. Conclusion
h. Recommendation.