The government on Friday said that the proposed India–UK Comprehensive Economic and Trade Agreement (CETA) contains strong safeguards to fully protect India’s policy autonomy on compulsory licensing, including during public health emergencies, while also opening up significant opportunities for Indian firms in the UK’s public procurement market.
Clarifying concerns in the Rajya Sabha, Minister of State for Commerce and Industry Jitin Prasada said the agreement reaffirms both countries’ rights to use all flexibilities available under the World Trade Organisation’s Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement. This includes provisions under Articles 31 and 31bis, which allow compulsory licensing of patents in specific circumstances, such as public health needs.
Prasada stressed that India’s existing legal framework on compulsory licensing remains unchanged under the CETA. He said the agreement does not require any amendment or dilution of the Patents Act, 1970, and preserves India’s discretion to act in the public interest. According to the minister, powers under Section 84, which deals with general compulsory licensing, and Section 92, which applies during public health emergencies, remain fully intact.
The minister further stated that the agreement does not impose any additional procedural requirements that could restrict the use of compulsory licensing. He clarified that there are no provisions mandating prior negotiations, introducing delays, or setting higher thresholds for issuing compulsory licences, thereby ensuring that India retains full flexibility to respond to public health or other national exigencies.
Beyond intellectual property safeguards, the government highlighted the economic opportunities arising from the trade pact, particularly in public procurement. Under the agreement, India will gain guaranteed and non-discriminatory access to the United Kingdom’s public procurement market, which is valued at more than 90 billion pounds annually. Key public entities, including the National Health Service, will be open to eligible Indian companies.
Prasada described this access as a major opportunity for Indian firms, especially in sectors such as information technology, pharmaceuticals and services. He noted that participation in the UK’s procurement market could help Indian companies expand their global footprint and secure long-term contracts in high-value segments.
At the same time, the agreement allows limited foreign participation in India’s public procurement system under defined thresholds and categories. The minister said such controlled competition could improve efficiency in government projects by driving down costs, enhancing quality and encouraging the adoption of better technologies, while still safeguarding domestic interests.
On market access commitments, Prasada informed the House that the UK has agreed to asymmetric thresholds in India’s favour. Under the proposed arrangement, the UK’s thresholds for goods and services procurement would be set at Special Drawing Rights (SDR) 130,000, while India would have a significantly higher threshold of SDR 450,000 for goods and services. This, he said, provides greater policy space and protection for India’s domestic procurement ecosystem.
The minister also pointed out that, for the first time, the UK has agreed to dilute several key provisions that are otherwise standard under the World Trade Organisation’s Government Procurement Agreement and its other free trade agreements. This concession, he said, reflects the balanced and mutually beneficial nature of the India–UK negotiations.
The government maintained that the CETA strikes a careful balance between protecting India’s sovereign policy choices, particularly in public health and intellectual property, and expanding economic opportunities through enhanced market access and trade cooperation.
