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.