Category: Uncategorized

India’s Government Procurement Market: Driving Growth and Innovation in 2024

India’s government procurement market continues to be a cornerstone of its economic activities, fostering infrastructure development, social welfare programs, and advancements in critical sectors. With an estimated ₹45 lakh crore in spending for the 2024/25 period, representing a 6% year-on-year increase, this market is pivotal in driving growth, supporting innovation, and fulfilling public service needs.

Key Highlights of the Indian Government Procurement Market in 2024

Sectoral Distribution of Procurement Spending

In 2024, the Indian government’s largest procurement spending areas include:

• Infrastructure: ₹15 lakh crore
• Defense: ₹6 lakh crore
• Healthcare: ₹5 lakh crore
• Renewable Energy and Sustainability: ₹3 lakh crore
• Technology and Digital Transformation: ₹2 lakh crore

These allocations underscore India’s strategic focus on sustainable development, national security, and improving the quality of life for its citizens.

Support for Micro, Small, and Medium Enterprises (MSMEs)

Micro, Small, and Medium Enterprises (MSMEs) remain integral to India’s procurement ecosystem. In 2024, MSMEs are expected to account for 30% of government procurement spending. This reflects the government’s commitment to empowering smaller businesses and promoting local manufacturing under initiatives like “Make in India” and “Atmanirbhar Bharat.”

Key policies favoring MSMEs include:

• Mandatory sourcing of 25% of total procurement from MSMEs.
• A 3% reservation for women entrepreneurs within the MSME category.

Rise of Digital Procurement Platforms

Digital platforms like the Government e-Marketplace (GeM) have transformed India’s procurement landscape. GeM enables transparent, efficient, and accessible procurement for buyers and sellers, significantly enhancing the ease of doing business.

Future Procurement Trends

India’s government procurement spending is projected to grow by 8% in 2025. Key drivers include:

• Expansion of infrastructure projects.
• Development of green energy capabilities.
• Modernization in healthcare and defense.

Emerging opportunities lie in:

• Artificial Intelligence (AI): Enhancing operational efficiency across sectors.
• Renewable Energy: Investments in the National Hydrogen Mission and solar projects.
• Smart Cities: Urban development with advanced technologies.

2024 Procurement Spending Breakdown

Government procurement is expected to contribute nearly 15% of India’s GDP in 2024. Significant investments include:

• Infrastructure Projects: Bharatmala Pariyojana (₹1.5 lakh crore).
• Defense Acquisitions: Fighter jets and naval vessels (₹50,000 crore).
• Renewable Energy: National Hydrogen Mission (₹20,000 crore).
• Smart Cities and Urban Development: (₹25,000 crore).

Procurement Metrics and Trends

• Volume and Value: Over 1,50,000 contracts projected, exceeding ₹45 lakh crore in combined value.
• Thresholds for Public Procurement: Varied based on project size and sector, advertised via platforms like GeM and the Central Public Procurement Portal (CPPP).

Private Sector Procurement in India

The private sector complements public procurement, with annual spending surpassing ₹100 lakh crore. Key characteristics include:

• Sustainability Focus: Green supply chains and renewable energy adoption.
• Efficiency: Increased use of digital procurement tools.

While public procurement emphasizes fairness and transparency, private procurement prioritizes cost-effectiveness and agility, with both converging on sustainability and innovation.

Conclusion

The Indian government procurement market in 2024 offers immense opportunities for businesses across diverse sectors. Companies aligning with government priorities in infrastructure, defense, healthcare, and renewable energy can unlock significant growth potential. Leveraging digital platforms like GeM and staying abreast of procurement trends are essential strategies for success.

Global Tenders provides the tools and insights businesses need to navigate India’s dynamic procurement market, helping them identify and secure opportunities for sustained growth and success.

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EV Charging Stations in India.

Scope : To Set up 100 fast EV charging corridors having 2,000 stations in India.

Public sector oil marketing company Bharat Petroleum will invest around Rs 200 crore this fiscal to set up 100 fast electric vehicles charging corridors having 2,000 stations along the busiest 100 national highways.

The second corridor will come up on the Kochi-Salem section of the National Highway 47 within the next two months.

In case a charging unit does not need a booster transformer, such a unit which will be a full-fledged centre offering rest rooms, refreshments/food court, among other amenities can be ready at a cost varying from Rs 7-12 lakh, and if the unit needs a transformer then the cost will go up to Rs 25 lakh.

Given this cost variance, They have budgeted for around Rs 200 crore investment this fiscal as they plan to set up as many as 2,000 fast charging stations across 100 corridors by March 2023.

The third corridor will most probably be the Mumbai-Bengaluru National Highway 4, and will have multiple units as the highway has amongst the highest traffic.

The national oil refiner and marketer, which is the second largest player with close to 30 per cent retail market in petrol and diesel, hopes that the EV ecosystem will grow faster than forecast earlier, and the company wants to play a big role in setting up the basic infrastructure for this ambitious drive.

View details – https://www.globaltenders.com/tender-detail?gt_id=472132915-100-fast-ev-charging-corridors-having-2000-stations-in-india

Boost Primary Student Learning in Tanzania

Total Cost: Us$ 200.00 million

The Governments current Education Sector Development Plan sets out priority areas for the education sector over the 2016/17-2020/21 period, covering all activities, from pre-primary to higher education, including TVET.

The BOOST Program will finance three out of the six priority programs:

(i)Ensuring access, participation and equity-achieving universal participation in pre-primary education, completion of basic education, improved equity in access and providing learning opportunities for vulnerable groups are the core focus areas;

(ii)Improving quality education and learning-this includes a focus on developing teacher competencies and skills, strengthening learning assessments, expanding and improving use of ICT in teaching and learning, and bettering alignment of school leadership and management for improved performance and accountability vis–vis student outcomes; and

(iii)Strengthening system structure, governance and management-this includes strengthening the institutional arrangements, harmonizing regulations and guidelines and promoting better system-wide coordination, collaboration and accountability.

It also includes improving financing equity and sustainability. Description of Program Results Areas:

Improving School Learning Environment BOOST will provide results-based financing to incentivize the relevant government agencies to either facilitate through policies and financing or directly providing for schools meeting minimum requirements to function, including

i) classrooms and associated facilities,

ii) curriculum aligned and developmentally appropriate teaching and learning materials, and

iii) implementation of a Safe School Program adapted for pre-primary and primary education.

Interventions will be targeted to specific LGAs for this component. Final criteria will be determined in the next phase.

(i) Classroom and associated facilities will help reduce the classroom congestion and improve the health and safety of children especially in the wake of COVID-19. Construction will target the disadvantaged LGAs and schools that have below average service delivery indicators in pupil classroom ratio and pupil latrine ratios especially at pre-primary level.

Construction of classrooms will follow the School Construction Strategy developed in the current EPforR and further incorporate school health and safety standards developed by the Ministry of Health for strengthening responses towards pandemic including COVID-19.

(ii) Curriculum-aligned and age-appropriate teaching and learning materials will be developed and provided including replenishment of textbooks, science kits, learning packages for pre-primary classes that include picture books, manipulatives and other learning aids that are development.

View details

Global Tenders provides complete analytics of your products and services from your target regions. It contains past trends with all details which help in backdated research and future forecasting. It shall contain the number of notices released in the past, a short description, country/region wise data, details of buyers and the number of notices released by them. It also contains detailed information regarding related products and services along with their trends which help in diversifying your business.

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