Vocal for Local: Govt procures nearly one-third of its goods and services from MSEs
India has procures 32% of its total goods and services from the MSEs during FY21 so far
The Central Government has procured over Rs. 13,000 crore worth of goods and services for various manufacturing units, of which materials amounting to approximately Rs 4,203 crores were procured from the micro and the small scale industry, during 2020-2021 financial year so far, says a report by The Financial Express..
This is well over the requirement of ensuring at least 25% of the materials comie from the MSEs; the figure is currently at 32.22%, according to the MSME Sambandh, a portal to track record of procurement from the small scale industries.
The report by The Financial Express states that, as per the government records, the number of small scale manufacturing units benefitting from this stands at 11,459. This includes around 332 owners from the SC/ST background with a selling amount of Rs 122.68crores. So far, in the financial year 2020-2021, their share of procurement stands at 0.94% of the total procurement from the MSEs.
According to the report, shares of women lead MSEs is more than that of the SC/SC lead ones so far in the present financial year. Around 45o women led MSEs have reportedly benefitted, selling goods and services amounting to around Rs. 95.88crores.
The Ministry of Petroleum and Natural Gas has procured the maximum amount of goods from the MSEs worth Rs. 1,500 crores which was followed by the Ministry of Power, Ministry of Heavy Industries and Public Enterprises.
The government aims at reducing usage of Chinese goods and keeping a strict check on import of the same since the Doklam standoff between India and China. It also wants to ensure that any Chinese investment doesn’t get a scope to take over Indian entities, seeing COVID situation as an opportunity to do so.
Read the full report in The Financial Express