The Department for Promotion Of Industry and Internal Trade (DPIIT) has notified a new set of rules that seeks to impose reciprocal restrictions on countries that don't allow Indian firms to participate in their government contracts.
As per the new norms, line ministries will monitor any restrictions or prohibitive tender conditions that directly or indirectly prohibits the participation of Indian companies in government contracts of foreign countries.
In case such restrictions are identified, India would prohibit companies of that country to participate in its publicly funded projects.
The new rules also make it mandatory for foreign companies to form JVs with Indian companies for participating in public-funded projects above a certain threshold, which will be notified later. However, such JVs will get relaxation on Minimum local content limits which were imposed earlier this year.
DPIIT also said that departments under the central government that have annual procurement budgets above Rs 1000 will have to notify a 5-year procurement roadmap.