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The Impact of Atmanirbhar Bharat on Indian Tendering | 30 May, 2025
The Impact of Atmanirbhar Bharat on Indian Tendering
Imagine a landscape where Indian businesses, especially MSMEs, no longer lose out to global giants in government tenders. Thanks to Atmanirbhar Bharat, this vision is fast becoming a reality—reshaping procurement, boosting local industry, and setting the stage for a self-reliant India.
Atmanirbhar Bharat: A New Era in Indian Tendering
Launched in May 2020, the Atmanirbhar Bharat Abhiyan (Self-Reliant India Mission) is a bold initiative aimed at making India economically self-sufficient. With a ₹20 lakh crore package—equivalent to 10% of India’s GDP—the government set out to revive the economy post-pandemic, focusing on local manufacturing, innovation, and resilient supply chains.
Limiting Global Tenders: Leveling the Playing Field
Before Atmanirbhar Bharat, Indian MSMEs struggled to compete with international players in large government tenders. The policy shift was dramatic:
- Global tenders up to ₹200 crore are now disallowed for government procurement.
- Thousands of contracts—previously dominated by foreign firms—are now accessible to Indian businesses.
Stat: The average public procurement in India is around ₹70 lakh, making this policy relevant for a vast majority of government tenders.
Empowering MSMEs: Market Access and Growth
MSMEs are the backbone of the Indian economy, contributing over 30% to GDP and employing more than 11 crore people. Atmanirbhar Bharat’s procurement reforms have:
- Mandated 25% of all government procurement from MSMEs.
- Reserved quotas for SC/ST and women-led businesses.
- Removed the Earnest Money Deposit (EMD) requirement for MSMEs in government tenders.
These changes have resulted in greater participation, fair competition, and improved financial stability for small businesses.
Defence and Strategic Sectors: Indigenisation at Scale
The defence sector has undergone a paradigm shift with:
- Import prohibitions on 101 military items.
- Creation of the Indian-IDDM (Indigenously Designed, Developed and Manufactured) procurement category.
Key Achievements:
- Indigenous defence equipment procurement increased from 31% (2015–16) to 45% (2020–21).
- Defence procurement from foreign sources dropped from 46% to 36% (2018–19 to 2021–22).
- 65% of the Ministry of Defence’s capital budget in FY22 was spent on domestic procurement.
Major projects like the Tejas fighter aircraft, C-295 transport aircraft, and AK-203 rifles are now being manufactured in India, bolstering self-reliance and national security.
PLI Schemes: Boosting Manufacturing and MSMEs
The Production Linked Incentive (PLI) schemes have catalyzed:
- Investments worth ₹1.46 lakh crore.
- Production and sales of ₹12.5 lakh crore across 14 key sectors.
- Establishment of over 1,300 manufacturing units in 27 states and UTs.
- Creation of 9.5 lakh jobs.
MSMEs now play a critical role in supply chains for sectors like electronics, pharmaceuticals, and specialty steel.
Digital and Policy Reforms: Making Tendering More Accessible
Atmanirbhar Bharat has driven significant digital transformation in tender processes:
- E-market linkages have replaced traditional trade fairs, helping MSMEs market products online.
- Fintech solutions enable transaction-based lending, improving credit access.
- Faster payments: MSME receivables from government and PSUs must be cleared within 45 days, enhancing liquidity.
Challenges and the Road Ahead
While the reforms have been game-changing, challenges remain:
- Awareness gaps: Many MSMEs are unaware of procurement benefits and digital platforms.
- Bureaucratic hurdles: Lengthy processes discourage participation.
- Delayed payments: Despite policies, late payments persist.
Addressing these challenges requires a focus on training, digital literacy, and process simplification.
Real Impact: Numbers Tell the Story
- MSME share in GDP: 30.1% (2022–23).
- PLI scheme investments: ₹1.46 lakh crore catalyzed; 9.5 lakh jobs created.
- Defence indigenisation: Indigenous procurement rose to 45% (2020–21).
- Global tenders up to ₹200 crore disallowed: Leveling the playing field for Indian businesses.
How National Tenders Empowers Indian Businesses
National Tenders is your trusted partner in navigating this transformation. We help businesses:
- Discover exclusive Indian tenders across all sectors.
- Simplify compliance with expert guidance on eligibility and documentation.
- Optimize bids with tailored strategies for higher success rates.
- Stay updated with daily alerts and recommendations for MSME-friendly opportunities.
Conclusion: Atmanirbhar Bharat’s Lasting Legacy in Tendering
Atmanirbhar Bharat has fundamentally transformed the Indian tendering ecosystem. By prioritizing local procurement, empowering MSMEs, and driving digital reforms, it has paved the way for a more inclusive and competitive economy.
Ready to win Indian tenders?
National Tenders offers end-to-end solutions to simplify your tendering process and maximize your success. Partner with us today to unlock new opportunities and lead India’s self-reliance journey.
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