New Delhi, May 8 -- India should approach the implementation of the Government Procurement (GP) chapter in the recently concluded India-UK Free Trade Agreement (FTA) with extreme caution, according to a report by the Global Trade Research Initiative (GTRI).

The report highlights potential risks to domestic industry, especially Micro, Small and Medium Enterprises (MSMEs), due to increased foreign competition.

It said, "India must approach the implementation of the GP chapter in the India-UK FTA with extreme caution"

India's GP market is among the largest in the world, estimated at nearly USD 600 billion annually, which is around 15 per cent of the country's GDP.

The report stated that this massive public spending supports vital sectors...