Finance Minister Nirmala Sitharaman on Wednesday said global tenders will be banned for government procurement up to Rs 200 crore to encourage business for MSMEs so that they could compete and supply for government tenders. This move in turn, the finance minister said, would go a long way to make industries in India self-reliant.
“Indian MSMEs and other companies have often faced unfair competition from foreign countries. Therefore global tenders will be disallowed in government procurement up to Rs 200 crore. The necessary amendments of General Financial Rules will also be done,” Sitharaman announced.
“This will be a step towards self-reliant India and will also support the ‘Make in India’ initiative,” she added. The step is aimed at generating more business for MSMEs, the finance minister said.
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A majority of MSMEs were unable to supply to large firms who they were serving all the while, the finance minister elaborated. Suddenly the conditions became tough and many of them couldn’t participate in the supply chain. This will make MSMEs do their business with a lot more confidence and carry on with trade despite some hurdles, she said.
Sitharaman on Wednesday spelt out the details of the Rs 20 lakh crore financial stimulus package announced by Prime Minister Narendra Modi on Tuesday. In a televised address to the nation on Tuesday evening, PM Modi had announced Rs 20 lakh crore -- roughly equivalent to 10 per cent of India’s GDP -- to support the nation’s economy hit hard by the 50-day lockdown imposed to fight the spread of Covid-19.
“Essentially, this is to spur growth and build a self-reliant India. That is why it is called Atmanirbhar India,” Sitharaman said at the media briefing.
The intention of the Union government, the finance minister said is to encourage local brands and help them to reinvent themselves at par with the global level.
