US meets Small Business procurement target; India lags on MSME procurement
Updated: Jun 30, 2015 01:57:58pm
New Delhi, June 30 (KNN) The United States- the largest global economy, awarded procurement contracts worth USD 91 Bn in fiscal year 2014 surpassing the mandatory procurement target set by Federal government by 2 percentage points.
Each year, the US government spends nearly half a trillion dollars on goods and services. By statute, it must ensure that that at least 23 per cent of that amount is spent with American Small Business.
The Indian MSE Public Procurement Policy-notified in 2012 and which become mandatory from 1st April 2014, also prescribes that 20 percent procurement by all Central government agencies should be done from Micro and Small Enterprises (MSEs). The data on procurement performance of these agencies, however, is not in public domain.
“Nobody disputes the widely held suspicion that the procurement from MSEs in India continues to be well below the mandatory prescribed limit of 20 per cent”, alludes a government procurement expert based in Delhi.
“It is for this reason why either the data on procurement from MSEs are not collected and compiled on time or when collected, are seldom made Public”, he added.
Contrary to Indian practice, the US Small Business Administration (SBA) uses “Small Business Procurement Scorecard” - an assessment tool to measure federal agency and government-wide achievement of the small business and socio-economic prime contracting and subcontracting goals.
‘The SBA works tirelessly to ensure that President’s commitment to small businesses to get the tools and resources to succeed is realized’, notes an official SBA communique.
‘Contracting can be a win-win for businesses and the government. Small businesses get the revenue they need to grow and create jobs, and the government benefits from working with some of the most innovative and responsive businesses in the world’, it mentions.
MSME industry associations have been pushing the government to focus on MSMEs’ participation in public procurement but the progress so far has been tardy both at the center and in the states.
“Public Procurement policy assumes great significance in view of sluggish global demand and there is a need to open up domestic demand for Indian industry to spur economic growth, as also pointed out by the RBI Governor recently”, says Dr Sangam Kurade, President of Federation of Indian Micro and Small & Medium Enterprises (FISME).
“An activist approach is required to ensure compliance by other Central government departments of the provisions of the MSE Public Procurement Policy and also to create some institutional framework to address the grievances of MSMEs who are supplying to these departments”, added FISME President.
The chief representative body of MSMEs- FISME, is planning a series of interventions in the next couple of months in the space of Public Procurement including issues like delayed payment to MSMEs, a Policy Paper for the Public Procurement Bill pending in the Parliament among others. (KNN/AB)
Each year, the US government spends nearly half a trillion dollars on goods and services. By statute, it must ensure that that at least 23 per cent of that amount is spent with American Small Business.
The Indian MSE Public Procurement Policy-notified in 2012 and which become mandatory from 1st April 2014, also prescribes that 20 percent procurement by all Central government agencies should be done from Micro and Small Enterprises (MSEs). The data on procurement performance of these agencies, however, is not in public domain.
“Nobody disputes the widely held suspicion that the procurement from MSEs in India continues to be well below the mandatory prescribed limit of 20 per cent”, alludes a government procurement expert based in Delhi.
“It is for this reason why either the data on procurement from MSEs are not collected and compiled on time or when collected, are seldom made Public”, he added.
Contrary to Indian practice, the US Small Business Administration (SBA) uses “Small Business Procurement Scorecard” - an assessment tool to measure federal agency and government-wide achievement of the small business and socio-economic prime contracting and subcontracting goals.
‘The SBA works tirelessly to ensure that President’s commitment to small businesses to get the tools and resources to succeed is realized’, notes an official SBA communique.
‘Contracting can be a win-win for businesses and the government. Small businesses get the revenue they need to grow and create jobs, and the government benefits from working with some of the most innovative and responsive businesses in the world’, it mentions.
MSME industry associations have been pushing the government to focus on MSMEs’ participation in public procurement but the progress so far has been tardy both at the center and in the states.
“Public Procurement policy assumes great significance in view of sluggish global demand and there is a need to open up domestic demand for Indian industry to spur economic growth, as also pointed out by the RBI Governor recently”, says Dr Sangam Kurade, President of Federation of Indian Micro and Small & Medium Enterprises (FISME).
“An activist approach is required to ensure compliance by other Central government departments of the provisions of the MSE Public Procurement Policy and also to create some institutional framework to address the grievances of MSMEs who are supplying to these departments”, added FISME President.
The chief representative body of MSMEs- FISME, is planning a series of interventions in the next couple of months in the space of Public Procurement including issues like delayed payment to MSMEs, a Policy Paper for the Public Procurement Bill pending in the Parliament among others. (KNN/AB)
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