Sharp fall in value of State Govt purchases from MSMEs

Our Bureau New Delhi | Updated on March 12, 2018 Published on August 13, 2013


There has been a marked decline in the value of Government purchases from micro, small and medium sector enterprises (MSMEs) in the past three years, the sharpest in 2012-13.

The value of Government purchases from MSMEs fell to Rs 4,24,592 lakh from Rs 7,17,752 in 2011-12 and about Rs 8,00,572 lakh in 2010-11.

Only five State Governments — Chhattisgarh, Gujarat, Delhi, Punjab and Jharkhand — showed an increase in value of purchases from these enterprises.

This information was given by K. H Muniyappa, the Minister of State (Independent Charge) for MSMEs, in a written reply to a question in the Rajya Sabha on Tuesday.

This is not good news for the MSME sector, which contributes 8 per cent to country’s GDP, 45 per cent to the total manufactured output and 40 per cent to exports. This largely unorganised sector also provides employment to about 60 million persons through about 2.6 crore enterprises, but faces challenge such as poor credit availability and infrastructure and raw goods constraints.

To boost the sector, from April 1, 2012, the Centre had asked all Union Government Ministries, departments and public sector undertakings to procure a minimum of 20 per cent of their annual value of goods or services from such enterprises.

Published on August 13, 2013
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