Kolkata: 

Central ministries have surpassed the target of buying goods and services from micro and small enterprises (MSEs) by a whopping 94% in the last fiscal, reports stated. Data from the MSME ministry’s Sambandh portal has shown that Central ministries bought goods and services worth Rs 92,675 crore from enterprises in this category in FY25, when they had a cumulative target of Rs 47,676.88 crore. In FY24, the Central ministries procured goods and services worth a total of Rs 73,800 crore.

Petroleum & natural gas ministry ahead of the pack

The laggards included the finance ministry, the health and family welfare ministry and the department of space. While the finance ministry fell short of its target by a yawning 42%, the health and family welfare ministry could meet only 19.60% of the target and department of space managed to meet only 2.30% of its target.

However, from another perspective the shipping ministry sailed past its procurement target from MSEs by a massive three times or 300%. From this angle, the ministry of petroleum and natural gas came second with 173% of its target and civil aviation exceeded its target by 148%.

The highest procurement from this sector was done by the petroleum & natural gas ministry. It stood head and shoulders above other ministries with a total value of Rs 31,304 crore. The defense ministry’s cumulative achievement was Rs 13,039 crore and the power ministry made procurements of Rs 11,584 crore in both goods and services in FY25.

How the policy stimulates the small sector

The Sambandh portal states that in 2012 the public procurement policy for Micro and Small Enterprises (MSME) mandated that every central ministry or department or PSU must set an annual target for procurement from this sector. The objective should be hitting an overall procurement goal of at least 25% of the total annual purchases from MSEs. Moreover, it has also been stipulated that of the 25% target, 4% should be reserved for MSEs that are owned by SC/ST and another 3% should be obtained from MSEs owned by women entrepreneurs.

Procurement by different ministries from the micro and small enterprises plays a significant role in promoting growth in this labour-intensive segment. Along the way, this policy promotes growth, increasing competition/efficiency and fosters innovation. This way the government can unlock economic potential, help generate employment apart from diversifying its supplier base.

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