Public procurement from MSEs

In FY25, central public sector enterprises (CPSEs) procured goods and services worth Rs 77,525 crore, up 3.7% from Rs 74,728 crore in FY24.

  • MSE Procurement Share:
    • Although the absolute procurement from MSEs saw a marginal increase, its share in the total government procurement slightly dropped from 43.7% in FY24 to 42.5% in FY25.
    • Importantly, this share remains well above the mandatory annual minimum target of 25%.

Policy Targets and Sub-Targets

  • Overall Procurement Target:
    • The Public Procurement Policy for MSEs mandates that at least 25% of total annual government purchases should be sourced from products or services provided by MSEs.
  • Focused Sub-Targets:
    • There is a specific goal to have 4% procurement from MSEs owned by SC/ST entrepreneurs.
    • Additionally, 3% of procurement is targeted from MSEs owned by women entrepreneurs.

(Source: FE)

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