Despite the decline, the share of procurement made by CPSEs from MSEs in FY24 remained well above the 25 per cent annual target mandated by the government.
Goods and services procured by various government departments and central public sector enterprises (CPSEs) from micro and small enterprises (MSEs) in the financial year 2023-24 declined by 9.2 per cent from the previous financial year 2022-23, showed the official data from the MSME Ministry’s Sambandh portal.
According to the data as of April 11, procurement from MSEs in FY24 stood at Rs 58,744 crore – 34.2 per cent of the overall procurement worth Rs 1.71 lakh crore made by CPSEs during the year. In comparison, Rs 64,721 crore worth of procurement was made from MSEs in FY23 with a 37 per cent share in Rs 1.74 lakh crore total procurement during the year.
However, the 34.2 per cent share of procurement made by CPSEs from MSEs remained well above the 25 per cent annual target mandated by the government even as it was down from 37 per cent in FY23.
Consequently, the number of MSEs benefitting from the procurement also dropped to 1.95 lakh in FY24 from 2.36 lakh in FY23.
Out of the 25 per cent annual target, every central ministry or department or CPSE needs to procure 4 per cent from MSEs owned by SC/ST entrepreneurs and 3 per cent from MSEs owned by women entrepreneurs.
Procurement from SC/ST entrepreneurs in FY24 also dropped to Rs 1,145 crore with a 0.67 per cent share in total MSE procurement from Rs 1,546 crore procurement with a 0.89 per cent share in FY23.
Likewise, procurement from women MSEs also declined to Rs 2,073 crore with a 1.21 per cent share in MSE procurement vis-a-vis Rs 2,318 crore procurement with a 1.33 per cent share in FY23, showed data from the Sambandh portal
The number of SC/ST units and women-led units benefitting subsequently declined to 8,392 units and 15,868 units respectively in FY24 from 10,348 units and 16,726 units respectively in FY23.
Importantly, the order value of goods and services sold by MSMEs to the government’s departments, public sector units, and ministries via the e-commerce portal Government eMarketplace (GeM) had doubled in FY24 from the previous fiscal.
According to the data from the portal, GeM’s total order value or gross merchandise value (GMV) jumped to Rs 4 lakh crore in FY24 from Rs 2.01 lakh crore in FY23, on the back of growth in goods and services procured by various government departments and enterprises.
