New Delhi, May 6 -- The central government's procurement from micro and small enterprises (MSEs) rose 21% to Rs.1.14 trillion in FY26, according to the MSME Sambandh portal. This surge meant smaller firms bagged nearly half (48.91%) of all central government orders, a significant increase from the 43.28% ( Rs.93,971 crore) recorded in FY25.

This performance far exceeds the statutory requirement for the government to source at least 25% of its orders from MSEs.

Industry stakeholders and experts suggested the rising volumes reflected growing MSME inclusion within the national economy. However, they also cautioned that these headline figures may mask underlying gaps: most contracts remain concentrated among larger MSEs and are often limite...