Small businesses had 69% less opportunity to network with government buyers and sell products in FY19

By: |
February 10, 2020 8:09 PM

Trade, Imports, Exports for MSMEs: The government e-marketplace (GeM) launched in August 2016 to make public procurement from MSEs more transparent and efficient has over 71,000 MSE sellers out of nearly 3.3 lakh total sellers.

As on February 10, FY2020, procurement from MSEs stood at 29.04 per cent. (Image: Reuters)

Trade, Imports, Exports for MSMEs: The MSME Ministry in order to connect the buying organisations and MSE sellers and understand the formers’ demands and help them identify the right seller has been organising the Vendor Development Programmes (VDP) from past few years. However, the number of such VDPs organised has declined significantly. According to the data shared by Gadkari on Monday in a written reply to a question, the MSME Ministry had organised 403 VDPs in 2016-17 and 442 VDPs in 2017-18. The number, however, fell in 2018-19 to just 136 — a 69 per cent decline from the preceding year. The total number of registered vendors with CPSUs as on February 5, 2020, was 20,775.

Till November FY20, the minimum procurement threshold of 25 per cent goods and services from MSEs by CPSUs has already crossed with 28.96 per cent procurement worth Rs 17,720 crore benefiting 65,920 MSEs during the eight-month duration of FY20. The procurement amount from MSEs for FY19 was Rs 40,434 crore that benefitted 1.27 lakh MSEs, Gadkari had informed Rajya Sabha in November.

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As on February 10, FY2020, procurement from MSEs stood at 29.04 per cent worth Rs 28,151 crore and benefitted over 1.08 lakh MSEs out of which over Rs 456 crore of goods were procured from SC/ST MSEs and Rs 280 crore of goods were bought from women-owned MSEs, according to the public procurement policy monitoring portal MSME Sambandh. In procuring these goods, 4,579 SC/ST owned MSEs and 1,398 women-owned MSEs were benefited.

The government e-marketplace (GeM) launched in August 2016 to make public procurement from MSEs more transparent and efficient has over 71,000 MSE sellers out of nearly 3.3 lakh total sellers. The MSE sellers contribute 52.65 per cent of the order value on the GeM platform. In order to reach out to more such sellers and help them get on-board the GeM marketplace to sell across India, the government had launched GeM Samvaad in December last year. Finance Minister Nirmala Sitharaman had proposed in her budget speech to increase the turnover of GeM to Rs 3 lakh crore even as Rs 40,000 crore of procurement has been made through GeM, PTI reported on Monday quoting Expenditure Secretary T V Somanathan.

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