As policymakers grapple with implications of AI, much of the debate has focused on ensuring that regulation keeps pace with innovation. Yet, regulation is only one part of the equation. An equally important policy instrument that must keep pace with tech is public procurement.
Public procurement determines what goods and services are purchased by the government and, consequently, which technologies are adopted at scale. This is one of government's most powerful instruments of industrial policy. Accounting for 20-22% of India's GDP, it shapes markets, creates demand and influences investment decisions. It's guided by Public Procurement (Preference to Make in India) Order (PPP-MII) 2017.
