PSU share of procurement from small cos falls in FY25

There is a push for procurement from MSMEs in a bid to support small businesses

- Manas Pimpalkhare & Rituraj Baruah

The share of public procurement by central PSUs from micro and small enterprises (MSEs) fell in FY25, for the first time since the pandemic.

In FY25, central government-run firms procured about 35% of their total public procurement from micro and small businesses, the lowest since FY23's 37%.

Public procurement plays a key role in the economy as both central and state governments, and their entities form a significant part of the order books of businesses.

In a bid to ensure transparency, the Centre has digitized the process of procurement for government departments and companies. Further, in a bid to support small businesses and entrepreneurs, there is a push for procurement from micro, small and medium enterprises (MSMEs).

According to data from the MSME ministry's Sambandh portal, procurement by central public sector enterprises rose in FY25 to ₹2.6 trillion, from ₹1.7 trillion in the previous fiscal.