Sustainable procurement of India's approach is a work in progress, characterized by a framework and existing initiatives but lacking comprehensive integration and widespread implementation, especially in the public sector. While the country leverages its significant public procurement spending (around 30% of GDP) for sustainability goals through policies like preferential treatment for Micro and Small Enterprises (MSEs) and energy efficiency mandates, challenges remain in awareness, policy completeness, fiscal constraints, and market availability, hindering its full potential.
Sustainable procurement of India's approach is a work in progress, characterized by a framework and existing initiatives but lacking comprehensive integration and widespread implementation, especially in the public sector. While the country leverages its significant public procurement spending (around 30% of GDP) for sustainability goals through policies like preferential treatment for Micro and Small Enterprises (MSEs) and energy efficiency mandates, challenges remain in awareness, policy completeness, fiscal constraints, and market availability, hindering its full potential.
Progress and Initiatives
Government Framework: -
India has a framework for sustainable public procurement, aiming to encourage environmental and social responsibility by including sustainability criteria in procurement and supplier selection.
Government e-Marketplace (GeM): -
This digital platform facilitates online procurement for government departments and includes sustainability criteria in the procurement process.
Energy Efficiency Mandates: -
Rules and policies mandate the procurement of energy-efficient appliances, such as those with Bureau of Energy Efficiency (BEE) Star Ratings.
Support for MSEs: -
Policies provide preference to Micro and Small Enterprises (MSEs) in public procurement, with a specific reservation for women-led enterprises, fostering inclusivity.
Focus on Sectors: -
Sustainable procurement principles are being applied in sectors like manufacturing, agriculture, and construction to promote eco-friendly practices and materials.
Challenges and Gaps
Limited Integration: -
Sustainability is often treated as a minor aspect or a "footnote" in procurement legislation, rather than a central focus.
Low Awareness and Skills: -
There is a general lack of awareness and skills within public and private sectors on how to effectively integrate sustainability into procurement.
Perception of Higher Costs: -
A common perception is that sustainable options are more expensive, which can be a barrier to adoption.
Weak Monitoring: -
Monitoring mechanisms for sustainable procurement practices are often weak or incomplete, limiting their effectiveness.
Incomplete Policy Frameworks: -
There is no comprehensive national green public procurement policy, with current efforts being fragmented across different initiatives.
Opportunities
Leveraging Public Spending: -
India's significant public procurement spending presents a powerful tool to drive sustainable production and consumption patterns.
Promoting Green Markets: -
By incorporating sustainability criteria, public procurement can shape markets and create demand for low-carbon and sustainable materials and products.
Addressing Climate Goals: -
Sustainable procurement can significantly contribute to India's climate commitments and overall sustainable development goals.
MJF Lion ER YK Sharma
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