THE GOVERNMENT DECISION TO PURCHASE 4% BUDGET FROM DALIT FIRMS BENEFICIAL TO THE DALIT FIRMS????

GROUP : 3

INTRODUCTION
The Centre is set to make it compulsory for 4% of its annual purchases to be made from units run by dalits. A rough estimate of the proposed spending comes to Rs 25,000 crore.

 The 4% purchase quota proposal from ministry of MSME is part of the policy that 20% of government procurement be done from MSMEs. Preferential procurement has been an early poll promise of UPA

DALITS IN INDIA
The word Dalit means deprived. Total population of Dalits 166 million (16.6% of total population of the country) Out of 302 million people below the poverty line, It is estimated that 80 million of them are Dalit. Three-fourths of poor Dalit's in India live in rural areas

 In rural India, the number of poor Dalit's increased at a rate of 0.1 percent between 1991 and 2010 while in urban areas the increase was much sharper, i.e., 2.4 percent per annum, over the same time period.

DALIT FIRMS IN INDIA

Total private firms in India stand at around 38 million. Dalit enterprises increased from 2.18 million to 3.69 million. The proportion of all private enterprises owned by Dalit's is at 9.8% compared to their population at 16%. The annual growth rate of the dalit enterprise is very low at

6.77% per annum.

 They are considerably advantaged in the construction sector They are disadvantaged in the trade, transport, hospitality food and service sectors.

PUBLIC PROCUREMENT POLICY

20% procurement policy seven years ago from MSME sector. Procurement policy was rejected by some ministers on the basis of quality of products. Decision now to make 4% compulsory now from Dalit in the MSME sector

WHY THE GOVERNMENT HAS TAKEN SUCH A STEP....???

Dalit entrepreneurs find it hard to crack the supplier/dealership chain. purchases from these units will boost entrepreneurship among poor classes. To increase the job quota. the fear of competition from entrenched businessmen.

DISADVANTAGES
Inefficiencies in the system and corruption. Dalit firms would struggle with deadlines at first. No uniformity Quality Discrimination

ADVANTAGES
Increase in revenue of Dalit firms Increase in job oppurtunities. To help in development of dalit firms.

STAND

Yes
the decision is right and is extremely beneficial to the dalit firms.

REASONS SUPPORTING THE STAND

The benefits that the Dalit people will gain would far outweigh the drawbacks. After the initial introduction of the scheme, Dalit companies will be able to fight competition. the need for a developing country is the development of all structures of society.

WHAT ELSE COULD BE DONE .?

government ought to constitute a body, with the twin task of identifying Dalit/Tribal entrepreneurs who are already supplying goods and services to the government through middlemen, and then connecting them directly to procurement departments

..THANK

YOU.