Tags:Economy
For Prelims: Public Procurement Policy, Micro, Small and Medium Enterprises (MSMEs), Central Public Sector Enterprise (CPSE), Mandated procurement target, Increase in procurement (FY 2025-26), Nodal Ministry, New initiative launched, Current context
For Mains: Inclusive growth, economic empowerment of SC/ST communities, public procurement as a tool for social justice, vendor development programs
Source:
PIB
5 facts for one-day exams
SSC, railway, police and teaching exams ask direct questions like these.
- CPSEs have a mandated 4% procurement target from SC/ST MSEs.
- The NSSH scheme is implemented by the Ministry of MSME.
- Public procurement from SC/ST MSEs rose 36 times by FY 2025-26 since the NSSH scheme started.
- The EA&SVDP initiative was launched to connect SC/ST MSEs with CPSEs.
- 30 CPSEs participated in the round table discussion on 5 November 2026.
Why in the news?
A round table with 30 CPSEs reviewed the mandated 4% procurement target from SC/ST MSEs under the Public Procurement Policy. The National SC-ST Hub (NSSH) scheme has driven a 36-times increase in such procurement since its inception, reaching a high in FY 2025-26. A new initiative, Entrepreneur Awareness & Special Vendor Development Program (EA&SVDP), was highlighted to further connect SC/ST entrepreneurs with CPSEs.
Summary
- The Public Procurement Policy mandates that Central Public Sector Enterprises (CPSEs) procure 4% of their annual purchases from SC/ST-owned Micro and Small Enterprises (MSEs).
- The National SC-ST Hub (NSSH) scheme, run by the Ministry of MSME, provides handholding and support to SC/ST MSEs to increase their participation in public procurement.
- In FY 2025-26, procurement from SC/ST MSEs saw a 36-times increase compared to the year of the scheme's inception, reflecting sustained policy focus.
Key Analysis and Impact
The 36-times increase in procurement from SC/ST MSEs highlights the effectiveness of targeted policy interventions like the NSSH scheme. The round table discussion serves as a monitoring mechanism, bringing together CPSEs, the Government e-Marketplace (GeM), and the National Small Industries Corporation (NSIC) to address implementation gaps. The introduction of the EA&SVDP initiative further deepens outreach by creating direct vendor development programs and awareness campaigns. This multi-stakeholder approach is critical for achieving equitable economic participation and fulfilling constitutional mandates for SC/ST welfare.
Way Forward
Sustained momentum will require CPSEs to formulate internal action plans, as urged by the Ministry. Leveraging digital tools like GeM's dedicated marketplace filters for SC/ST sellers and strengthening the role of Nodal Officers can streamline vendor registration and product matchmaking. Expanding the NSSH's capacity-building initiatives and linking them with state-level SC/ST corporations can further scale up the impact, moving towards the 4% target consistently.
Background GK
Textbook concepts you need to understand this news
- Public Procurement Policy
- A government framework that mandates a certain percentage of annual purchases by public sector enterprises to be sourced from specific categories of suppliers, such as MSEs, to promote inclusive growth.
- Micro, Small and Medium Enterprises (MSMEs)
- Enterprises classified based on investment in plant and machinery or equipment and annual turnover. The MSME sector is a major contributor to employment and industrial output in India.
- Central Public Sector Enterprise (CPSE)
- A company in which the Government of India holds 51% or more of the paid-up capital. CPSEs operate in strategic and infrastructure sectors.
Facts to remember
Tap a card to see the answer. Try to recall it first.
How exams will ask this
- Data: 36 times increase in public procurement from SC/ST MSEs in FY 2025-26 since inception of the NSSH scheme.
- Data: Mandated 4% procurement from SC/ST MSEs under the Public Procurement Policy.
- Nodal Body: Ministry of Micro, Small and Medium Enterprises (MSME).
Don't make this mistake!
Examiners may confuse the 4% procurement target for SC/ST MSEs with the 25% procurement target for all MSEs under the Public Procurement Policy. The 4% is specifically for SC/ST-owned units.
Write these in mains answers
- Inclusive growth, economic empowerment of SC/ST communities, public procurement as a tool for social justice, vendor development programs
Stuck? Get it in one tap
The government has a policy that large public sector companies (CPSEs) must buy 4% of their goods and services from businesses owned by SC/ST communities. To help these small businesses, the Ministry of MSME runs the National SC-ST Hub (NSSH) scheme, which guides them on how to sell to CPSEs. This effort has led to a 36-times increase in such purchases. A new program called EA&SVDP was also discussed to create more awareness and connect SC/ST entrepreneurs with CPSEs.
- CPSEs have a mandated 4% procurement target from SC/ST MSEs.
- The NSSH scheme is implemented by the Ministry of MSME.
- Public procurement from SC/ST MSEs rose 36 times by FY 2025-26 since the NSSH scheme started.
- The EA&SVDP initiative was launched to connect SC/ST MSEs with CPSEs.
- 30 CPSEs participated in the round table discussion on 5 November 2026.
- Economy: MSME sector and public procurement
- Governance: Schemes for SC/ST welfare
Related concepts: Public Procurement Policy, Micro, Small and Medium Enterprises (MSMEs), Central Public Sector Enterprise (CPSE)
Practice questions
Pick an answer, then read the explanation.
- Q1Easy
Which ministry is the nodal ministry for the National SC-ST Hub (NSSH) scheme?
Explanation: The NSSH scheme is implemented by the Ministry of MSME to provide handholding support to SC/ST-owned micro and small enterprises. The Ministry of Social Justice and Empowerment handles welfare schemes for SC/ST communities but not this specific scheme.
- Q2Medium
How many times has public procurement from SC/ST MSEs increased since the inception of the NSSH scheme, as reported in FY 2025-26?
Explanation: In FY 2025-26, there was more than a 36 times hike in public procurement from SC/ST MSEs since the scheme's inception. The other options (12, 24, 48) are incorrect as they do not match the reported figure.
- Q3Medium
What is the primary objective of the Entrepreneur Awareness & Special Vendor Development Program (EA&SVDP) launched under the NSSH scheme?
Explanation: The EA&SVDP was highlighted as a new initiative for creation of awareness amongst SC/ST MSEs and to network with CPSEs. It does not provide direct financial subsidies, replace procurement policy, or focus on exports.
Frequently asked questions
1. What is the mandated procurement target for CPSEs from SC/ST MSEs?
CPSEs are mandated to procure 4% of their annual purchases from SC/ST-owned Micro and Small Enterprises under the Public Procurement Policy.
2. What is the National SC-ST Hub (NSSH) scheme?
The NSSH scheme, implemented by the Ministry of MSME, provides handholding, mentoring, and vendor development support to SC/ST MSEs to enhance their participation in public procurement.
3. How much has public procurement from SC/ST MSEs increased in FY 2025-26?
Public procurement from SC/ST MSEs increased by more than 36 times since the inception of the NSSH scheme, as reported in FY 2025-26.
All sources
- Original10 November 2026 · Read story
