No global tenders for govt purchases up to Rs 200 crore, says FM Nirmala Sitharaman in move to support MSMEs

No global tenders for govt purchases up to Rs 200 crore, says FM Nirmala Sitharaman in move to support MSMEs

Tenders for government procurement will no longer be open for global companies in projects worth up to Rs 200 crore, Finance Minister Nirmala Sitharaman announced Wednesday. Sitharaman made the announcement as part of a slew of measures unveiled by the government to support the economy that's taken a big hit because of the novel coronavirus pandemic.

The move to bar global procurement tenders in cases of government purchases up to Rs 200 crore is largely aimed at boosting the business of India's Micro, Small and Medium Enterprises. The move to disallow global tenders for up to Rs 200 crore will level the playing field for MSMEs and cut out "unfair competition" from foreign companies, FM Sitharaman suggested while making the announcement Wednesday.

The move is also a step towards "self-reliant" India, a push that Prime Minister Narendra Modi focussed on during his address to the nation on Tuesday.