Government bought 16% more goods and services in value from micro and small enterprises in FY23
- IBEF
- July 24, 2023
The value of central public sector enterprises' (CPSEs') procurement from micro and small enterprises (MSEs) increased by 16.8% from FY22 to FY23. According to the information provided by Mr. Bhanu Pratap Verma, Minister of State for Micro, Small and Medium Enterprises, 150 CPSEs made procurement of US$ 7.60 billion (Rs. 62,463 crore) in FY23 as opposed to the procurement of US$ 6.50 billion (Rs. 53,468 crore) from 150 CPSEs in FY22.
In FY22, the MSE procurement was 32.5% of the overall US$ 20 billion (Rs. 1.64 lakh crore) procurement made by CPSEs, while on the other hand, in FY23, the share increased to 33.6% out of the total procurement of US$ 21 billion (Rs. 1.75 lakh crore).
According to the information provided, MSE procurement was US$ 4.91 billion (Rs. 40,399 crore) in 2018-19 and now has increased by 54.6% in FY23.
The procurement of goods and services from micro and small businesses owned by members of the scheduled castes and tribes, on the other hand, climbed from US$ 100.4 million (Rs. 824.71 crore) in 2018-19 to US$ 178.7 million (Rs. 1,468 crore) in 2022-23, representing a 78% increase. Moreover, the share of CPSEs’ procurement of goods and services also increased from 26% in FY19 to 35.6 in FY23.
From FY19 to FY23, 9.19 lakh and 38,289 MSEs owned by SC-STs received benefits from procurement, respectively.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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