MSME Inclusion in Public Procurement in India: Challenges and Opportunities

Abstract

Public procurement is an important component of government spending and plays a crucial role in enhancing economic growth. In India, Micro, Small, and Medium Enterprises (MSMEs) contribute significantly to employment generation and industrial development. Understanding their importance, the Indian government has implemented various policies to facilitate MSME participation in public procurement. This study examines the legal framework, challenges, and opportunities for MSME inclusion in public procurement. The research explores key provisions such as the 25% procurement mandate, price preference, exemptions etc. The Study also analyzes barriers like delayed payments and complex tendering procedures. Data analysis includes secondary data from government reports and procurement platforms like GeM. The study concludes with recommendations to enhance MSME participation in government contracts.