The value of goods and services bought by central public sector enterprises (CPSEs) from micro and small enterprises (MSEs) in the financial year 2023-24 has hit a new high. According to the data available on the MSME Ministry’s public procurement monitoring portal MSME Sambandh on Monday, CPSEs had made procurement worth Rs 75,253 crore from MSEs in FY24, growing by 16.2 per cent from Rs 64,721 worth of procurement made in FY23.
Importantly, the data on FY24 procurement available on the portal as of April 11 was Rs 58,744 crore. The latest figures indicate updated FY24 data from the government.
FE Aspire had reported on FY24 performance in Apri this year based on the available data showing a decline in procurement value from the previous fiscal year.
According to the procurement policy, CPSEs need to procure at least 25 per cent of their total procurement value from MSEs in a financial year, of which 4 per cent is to be procured from MSEs owned by SC/ST entrepreneurs and 3 per cent from MSEs owned by women entrepreneurs.
In FY24, the share of purchase from MSEs stood at 35.6 per cent benefitting 2.18 lakh enterprises in comparison to 37.1 per cent in FY23 involving 2.36 lakh enterprises.
Likewise, procurement from SC/ST and women entrepreneurs stood at Rs 1,406 crore with 0.67 per cent share and Rs 2,609 crore with 1.24 per cent share in the overall minimum procurement share of 25 per cent from MSEs.
In comparison, while the procurement from SC/ST entrepreneurs in FY23 was slightly higher at Rs 1,546 crore, procurement from women-led MSEs was lower at Rs 2,318 crore.
Meanwhile, the e-commerce marketplace portal of the commerce ministry Government eMarketplace (GeM) had reported over Rs 4 lakh crore in gross merchandise value (GMV) in FY24, doubling from Rs 2 lakh crore in FY23. The order volume in FY24 was 62.79 lakh.
The growth of the GeM has also attracted other countries in Asia and Africa looking to replicate the model, FE had reported on April 5 citing an official source. GeM is currently the third largest public procurement platform globally with South Korea’s KONEPS being the biggest platform followed by Singapore’s GeBIZ.
