Government Mandates 25% Procurement from MSMEs Under Public Procurement Policy
With the objective of promoting the growth and development of MSMEs by improving their market access and linkages and providing an assured market, the Ministry of MSME notified the implementation of the Public Procurement Policy for Micro and Small Enterprises (MSEs) Order from 1st April, 2012. The Policy is notified under the MSMED Act 2006. The Policy was made mandatory from 1st April 2015. The amended policy mandates 25% annual procurement from MSEs by Central Ministries/ Departments/ Central Public Sector Enterprises (CPSEs), including 4% from MSEs owned by SC/ST and 3% from MSEs owned by Women entrepreneurs.
The total procurement by Central Ministries/ Departments/CPSEs from MSEs during the financial year 2023-24 is Rs. 82,630.38 crores (36.06%).