Empowering MSMEs with News & Insights

Large enterprises should buy 30% from MSMEs

Updated: Jun 19, 2013 04:49:58pm
image
New Delhi, Jun 19 (KNN)  The government should consider the proposal of making it mandatory for large companies to purchase 30 per cent of MSME output, a panel headed by MSME secretary Madhav Lal said. 

The high level government panel has suggested that MSMEs should be the source of 30 per cent of large enterprises requirements to boost the sector which is the backbone of Indian economy, a condition that has already been imposed on foreign multi-brand retailers setting up business in India.

Understanding the challenges India faces while negotiating free trade agreements with other countries the high panel formed by cabinet secretary to encourage MSMEs has also suggested measures to tackle non-tariff barriers.

The panel has also advised the government not to provide any incentive to large enterprises for sourcing from MSMEs as such condition also applies to multi-brand retailers setting up their business here.

The central government has already made provision for 20 per cent procurement from MSMEs by ministries, departments and CPSUs.  But the panel wants the law to be amended to include private enterprises.

Also, MSMEs which are importing raw material should add value to it for exports.

Recently, the government had included Iran in the list of countries from where raw material could be imported provided the importers add 15 per cent of value to it.  (KNN)

COMMENTS

    Be first to give your comments.

LEAVE A REPLY

Required fields are marked *