New Delhi, Jul 16 (KNN) Public sector purchases from Micro and Small Enterprises (MSEs) continue to grow in 2025–26, with Central Public Sector Enterprises (CPSEs) sourcing 42.2 per cent of their total procurement from MSEs—well above the mandatory 25 per cent target and significantly higher than 35 per cent achieved in 2024–25.

Out of the Rs 35,090 crore total procurement by CPSEs so far this fiscal year, Rs 15,224 crore came from MSEs. Notably, Rs 1,088 crore worth of goods and services were procured from women-led enterprises, reflecting the 3 per cent sub-target provision introduced for women entrepreneurs.

This progress stems from the 2018 revision to the Public Procurement Policy, which made it compulsory for CPSEs to procure at least 25 per cent of their purchases from MSEs—up from the earlier 20 per cent.

CPSEs’ procurement from MSEs has seen a steady increase over the years—from Rs 26,344 crore (23 per cent) in FY18 to Rs 53,423 crore (32.5 per cent) in FY22, Rs 61,033 crore (35.6 per cent) in FY23, and Rs 93,568 crore (35 per cent) in FY25.

Much of this procurement takes place through the Government e-Marketplace (GeM) portal, which offers transparent access to public sector buyers.

The Micro, Small and Medium Enterprises (MSME) sector remains a priority for the government due to its significant role in job creation and exports. With over 1 crore registered MSMEs employing 75 million people, the sector contributes 36 per cent to India’s manufacturing output and 45 per cent to exports.

In the Union Budget 2025–26, the government introduced several supportive measures, including increased investment and turnover limits for MSME classification, higher credit guarantees, and a new financial assistance scheme for first-time entrepreneurs from disadvantaged communities.

Sector-specific support for footwear, toys, and leather aims to further boost productivity and global competitiveness.

(KNN Bureau)