CPSEs Outperform With 34.63% Procurement From MSMEs In FY24, Exceeding 25% Mandate: FM Sitharaman

New Delhi, Dec 22 (KNN) Central Public Sector Enterprises (CPSEs) achieved a remarkable 34.63 per cent procurement from Micro, Small, and Medium Enterprises (MSMEs) during the financial year 2023-24, surpassing the mandated 25 per cent, highlighted Finance Minister Nirmala Sitharaman on Thursday.

Leading a Consultative Committee meeting on the 'Performance of Public Enterprises’, the minister stated that as per public procurement norms, CPSEs are required to allocate 25 per cent of their annual purchases to Micro and Small Enterprises (MSEs).

Within this target, she added, 4 per cent is designated for MSEs led by Scheduled Caste/Scheduled Tribe entrepreneurs (SC/ST), and 3 per cent for women entrepreneurs.

As of December 21, CPSEs' procurement from MSMEs reached Rs 35,836 crore, benefiting 1.25 lakh MSEs out of the total Rs 1.03 lakh crore procurement made by CPSEs in the current fiscal year, according to data from the MSME Sambandh public procurement monitoring portal.

Specifically, CPSEs procured 0.62 per cent (Rs 644 crore) from 5,250 SC-ST-owned MSEs and 1.03 per cent (Rs 1,063 crore) from 9,597 women-owned units.

Additionally, the meeting highlighted the substantial growth in Government e-Marketplace (GeM) procurement by CPSEs, soaring from Rs 7,035 crore in 2020-21 to an impressive Rs 1,33,720 crore in 2023-24 (up to November 2023).

Commerce Secretary Sunil Barthwal emphasised the government's efforts to assist Indian MSMEs in benefiting from international public procurement, reported PTI.

He stated that India is exploring avenues such as Free Trade Agreements (FTAs) to enable domestic MSMEs to participate in public procurement processes across different countries.

Barthwal emphasised the significance of public procurement, constituting 10-15 per cent of a country's GDP, which could translate to approximately USD 10-15 trillion. Many countries prioritise micro, small, and medium enterprises in their public procurement practices.

Barthwal highlighted the ongoing efforts to facilitate MSME access to international procurement opportunities, aiming for reciprocal access for Indian companies and MSMEs from other nations through initiatives like free trade agreements.

(KNN Bureau)