MSMEs propose small tenders as they seek bigger slice of public procurement pie
Updated : December 29, 2019 03:56 PM IST
In its budget suggestions, Federation of Indian Micro and Small & Medium Enterprises (FISME) has said that smaller firms are getting elbowed out from public procurement as orders are generally bundled up making their size very large.
Adding to the problems, the government is increasingly getting projects executed on turn-key basis through large corporates which do not fall under public private partnership (PPP) for the MSMEs.
Public procurement as a percentage of the gross domestic product (GDP) in the country is estimated at 20-22 percent. Given the size of Indian economy ($2.7 trillion), the public procurement amounts to nearly $500 billion annually.