Global Tender

A global tender is a publicly advertised NIT that invites international suppliers alongside Indian firms to compete for government contracts, used when specialised equipment or technology is unavailable from sufficient domestic sources.

What is a Global Tender?

A global tender (formally termed International Competitive Bidding or ICB) is an open tender extended to international participation. It is published in Indian e-procurement portals, national newspapers, and typically in international trade publications or the UN Development Business. The minimum response time for a global tender is six weeks from NIT publication, compared to three weeks for domestic open tenders.

Global tenders are used in four main situations: when adequate domestic competition does not exist for specialised equipment or technology; when multilateral funding agencies such as the World Bank, Asian Development Bank (ADB), or JICA mandate international bidding as a condition of their loan; when the procuring entity wants to benchmark domestic prices against international rates; and when specific government policies require international sourcing (such as for certain defence platforms before Make in India provisions apply).

Make in India policy significantly restricts global tenders for domestic procurement. Under the Public Procurement (Preference to Make in India) Order, global tenders are permitted without prior government approval only for procurement above Rs 200 crore. Below Rs 200 crore, Class-I local suppliers (50%+ local content) receive preference, and global competition must be specifically justified to the Department for Promotion of Industry and Internal Trade (DPIIT).

Technical specifications in global tenders must be neutral and not written around any specific foreign brand or manufacturer. Domestic suppliers meeting technical requirements compete on equal footing with international ones, though Make in India preference provisions apply.

Why Global Tenders Matter for Indian Government Suppliers

Global tenders can dramatically change competition. For Indian manufacturers, a global tender in your category can bring in international players with lower production costs or superior technology. Conversely, if you manufacture locally with sufficient local content, Make in India preference provisions (Class-I supplier status) give you a price advantage over imported goods. Tracking global tenders in your sector helps you anticipate international competition and time your market positioning.

Example

The Ministry of Health and Family Welfare issues a global tender on CPPP for procurement of 500 high-end MRI machines worth Rs 1,200 crore for AIIMS and central government hospitals. The tender has a six-week response period, bilingual documents (Hindi and English), a pre-bid conference in New Delhi, and specifies technical parameters neutral to any specific brand. Make in India Class-I suppliers (Indian manufacturers with 50%+ local content) get a 20% purchase preference in evaluation. Four Indian manufacturers and eight international firms respond. The Indian manufacturers benefit from the local content preference in L1 determination.

Frequently Asked Questions

When is a global tender mandatory instead of domestic open tender?

Global tenders are not universally mandatory for any value threshold. They are required when: a multilateral donor (World Bank, ADB) specifies ICB in the loan agreement; the item is genuinely not available from domestic sources; or government policy specifically requires international sourcing. For defence procurement, DAP 2020 categories specify when Buy (Global) is permitted. For civilian procurement, global tenders require explicit justification and, below Rs 200 crore, prior approval from DPIIT for goods covered by Make in India policy.

Do Make in India preferences apply in global tenders?

Yes. Even in global tenders, Class-I local suppliers (50%+ domestic value addition) get purchase preference over Class-II and foreign suppliers for procurement up to Rs 200 crore. For procurement above Rs 200 crore, a margin of purchase preference mechanism applies. Local content must be self-certified and can be subject to post-award verification. False local content declarations result in a three-year procurement ban.

Can a foreign company bid directly in an Indian global tender?

Yes, foreign firms can bid directly without a mandatory local partner unless the NIT specifies otherwise. However, for works and complex services, forming a Joint Venture with an Indian partner is common to combine international technology with local execution capability. For defence procurement, foreign firms in Buy (Global) category must comply with offset obligations (30% of contract value in defence-related activities in India).

How are foreign currency bids evaluated against INR bids?

The NIT specifies whether bids must be quoted in INR or whether foreign currency quotes are accepted. For capital equipment from foreign suppliers, INR equivalent at the RBI reference rate on a specified date is used for comparison. All customs duty, GST, and freight-to-destination costs are added to the foreign supplier's price to arrive at a comparable landed cost for L1 determination.