In order to support domestic suppliers to plan their production schedule, the government is considering developing nationwide specifications for public procurement of goods by Central government agencies. The proposal is likely to be included in the new industrial policy being prepared by the commerce and industry ministry. The policy may also suggest extending the offset policy in public procurement in sectors beyond defence such as electronics and ICT.
Standardised specifications of products would enable government departments and public sector units (PSUs) to release large orders helping the industry achieve economies of scale. As per estimates, the government and PSUs procure goods and services worth over Rs 5 trillion every year. Standardised specifications would also help domestic industry plan their production and technology well in advance. In absence of this, government agencies place small orders with different specifications and requirements.
Policy actions can help public procurement add significant value to the domestic industry. Besides, the ministry has developed an e-marketplace portal (GeM) for buying of goods and services by different government agencies and departments. Offset policy has helped countries in encouraging investments and transfer of technology. This is currently used in defence sector in India.