Finance Minister Nirmala Sitharaman on Thursday said CPSEs have made 34.63% of their total procurement from MSMEs in 2023-24 (till November) as against the mandated 25%.
Key Highlights
- Finance Minister Nirmala Sitharaman announced that 34.63% of procurement from CPSEs were from MSMEs in FY-24.
- CPSEs are required under public procurement guidelines to source 25% of their yearly purchases from MSMEs, she stated in her meeting.
- According to data from the public procurement monitoring portal MSME Sambandh, CPSEs have procured INR 37,418 crore worth of output, benefiting around 1.25 lakh MSEs as on December 22, 2024.
Out of the procurement made from MSMEs, 0.62 percent of procurement amounting to Rs 644 crore was made from 5,250 SC-ST-owned MSMEs while 1.03 percent of procurement worth Rs 1,063 crore was made from 9,597 women-owned units.
The ministry stated that at the discussion, the “exponential growth” in CPSEs’ Government e-Marketplace (GeM) procurement from Rs 7,035 crore in 2020–21 to Rs 1,33,720 crore in 2023–24 (up to November 2023) was underlined.
According to the data available on MSME Sambandh, Central Ministries, its various departments, and CPSEs have procured INR 37,418 crore worth of output from around 1.2 lakh MSEs as on December 22 during the FY 2023-24, including SC/ST owned MSEs.
India Considers FTAs to Enable MSMEs’ Participation in Global Public Contracts
The government also wants to assist MSMEs in taking advantage of foreign public procurement.
According to PTI, India’s Commerce Secretary, Sunil Barthwal stated in November that the country is considering Free Trade Agreements (FTAs) as a means of allowing its MSMEs to bid on public contracts abroad.
According to his statement, public procurement makes up approximately 10-15 percent of a country’s GDP, which could amount to around USD 10-15 trillion.
He also mentioned that several nations often prioritise micro, small, and medium enterprises in their public procurement processes.
Barthwal mentioned at an event that with the increasing number of free trade agreements (FTAs) being signed, efforts are being made to explore ways in which micro, small, and medium enterprises can gain access to public procurement opportunities in various countries.
This would provide Indian companies with a chance to expand their operations, while also allowing SMEs from other countries to utilise our portal for accessing opportunities.
