NEW DELHI, Oct. 2 -- Small businesses are taking a larger share of the central government's procurement, with purchases from the segment reaching Rs.48,635 crore in the first half of fiscal year 2027 (FY27)-53% of total reported procurement-as the government's spending gathers pace and external disruptions make domestic suppliers more important.

The figure is already more than double the 25% procurement target mandated for micro and small enterprises (MSEs), according to data on the government's MSME Sambandh portal. The mandate applies specifically to MSEs, and does not include medium enterprises.

Industry representatives expect procurement to accelerate in the second half of the fiscal, although they cautioned that a record full-year ...