To help the small and medium enterprises in these trying times, the central government is working on a new procurement policy, which will make it mandatory for government departments to procure 20% of all products and services through the micro, small and medium enterprises (MSMEs).
The Union ministry of MSME is trying to evolve a consensus among different government departments to this end.
Speaking to FE on the sidelines of a seminar, Economic Freedom: Relevance for Economic
Development?, organised by the Federation of Indian Micro and Small and Medium Enterprises (FISME), secretary in the ministry Dinesh Rai, has moved a proposal to make it mandatory for various ministries and departments to buy 20% of their total requirement from the sector.