This article discusses the Public Procurement in India, its legal framework and what role the public procurement can play for promoting innovation. The supply side innovation policies originated in developed countries severely limits its potential to deliver innovations in developing countries. Off late lots of research and implementation has been done in the European Union, UK, China, Brazil on the Public Procurement as demand side of Innovation policy and it is concluded as a potential tool for innovation promotion. India is increasingly becoming a top global innovator for high-tech products and services. Still, the country is underperforming relative to its innovation potential. Implementation of Public Procurement as a Demand side Innovation policy in the European Union, some OECD countries and subsequent result finds a strong ground in the context of India, since (1) the procurement can be shaped to absorb innovation for the government to focus on the significant internal market needs and (2) the public procurement bill introduced in 2012 in upper house of parliament is under discussion for countering the present procurement regime.
Keywords: Demand Side; Innovation Policy; India.