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Indian Cabinet MSME procurement policy.

31 Aug 2010

Source:  Business Standard

A procurement policy aimed to make it compulsory for Indian government departments and public sector units to source 20 per cent of their procurement needs from small and micro units, will soon be taken up by Cabinet in the Union Government a senior central government official said recently.
“It has been pending with the Cabinet for a while now, and I hope that the Cabinet will take it up any time soon,” MSMEs’ Secretary Dinesh Rai said on the sidelines of the Small Business Congress 2010, organised by Franchise India this week. Rai said there were 26 million SMEs in the country, of which 18.6 million were in the services’ space.

The sector contributes to eight per cent of the nation’s gross domestic product, as much as 45 per cent of the manufacturing output and 40 per cent of exports, besides offering employment to nearly 45 per cent of the working population. There existed the potential for their contribution to still rise further, he said. “Though we have a large number of small-and-medium units, their contribution to GDP in general and manufacturing in particular could go up a lot, as in Germany and China, their share to the manufacturing sector is a high 75-80 per cent,” he said.

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