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Public Procurement in India: Assessment of Institutional Mechanism, Challenges, and Reforms

Publication date

Jul, 2017

Details

NIPFP Working Paper No. 204

Authors

Bhabesh Hazarika and Pratap Ranjan Jena

Abstract

The present study assesses the public procurement system and recent reform initiatives in India and outlines the need for changes in the institutional frameworks. There are several issues in the public procurement activities in India, which stem from fragmented procedures and rules, lack of transparency, widespread irregularities, and unavailability of sufficient procurement professionals. The recent initiatives to establish a consistent and transparent public procurement system have not yielded the desired results. The emergence of the practice of e-procurement as a vital tool in integrating the public service delivery and good governance, however, shows some forward movement towards a transparent, accountable, and competitive procurement regime. Although General Financial Rules (GFRs) and other procurement manuals are exhaustive in nature, these need to be backed by legislative power.

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