Finance Ministry relaxes procurement rules for scientific research
Source:The Hindu ↗
Why It Matters
Illustrates the conflict between broad governance initiatives (transparency via GeM, domestic manufacturing via Make in India) and the niche requirements of scientific R&D. It is highly relevant for GS3 questions on constraints to scientific research in India, as well as GS2 questions on the inadequacies of e-governance tools.
Summary
The Finance Ministry has relaxed procurement restrictions for scientific research institutions, allowing them to bypass the Government e-Marketplace (GeM) portal and granting exemptions from 'Make in India' global tender limits. The mandatory use of GeM and restrictions on global tenders under ₹200 crore had resulted in scientists receiving sub-standard equipment and facing severe bureaucratic delays. The rollback aims to improve the 'ease of doing science' in India by ensuring researchers have access to specialized, high-quality international instruments necessary for advanced R&D.
Key Points
- The Finance Ministry has allowed scientific institutions to bypass the Government e-Marketplace (GeM) portal for procuring research equipment.
- The government also rolled back a 2020 'Make in India' restriction that previously barred global tenders for equipment worth less than ₹200 crore.
- The relaxation follows persistent complaints from scientists that mandatory GeM procurement led to sub-standard materials, administrative delays, and hindered the 'ease of doing science'.
- The issue highlights the limitations of applying uniform e-governance and domestic manufacturing mandates (Make in India) to specialized sectors like scientific R&D.
Important Terms
Government e-Marketplace (GeM)
National online portal for public procurement of goods and services by government departments and PSUs. Launched in 2016 to enhance transparency, efficiency, and speed.
UPSC context
GS Paper II & III: E-governance, public procurement reforms, and economic transparency.
General Financial Rules (GFR)
Rules issued by the Finance Ministry’s Department of Expenditure providing a framework for all government financial transactions and procurement procedures.
UPSC context
GS Paper II & III: Governance, public finance management, and institutional autonomy.
Global Tender Enquiry (GTE)
A procurement process inviting international bids, usually restricted for tenders below ₹200 crore to promote domestic industry, unless specific exemptions are granted.
UPSC context
GS Paper III: Science & Technology and Industrial Policy (Make in India).
Public Procurement (Preference to Make in India) Order
Government policy mandating preference for local suppliers in public procurement to boost domestic manufacturing and achieve 'Aatmanirbhar Bharat'.
UPSC context
GS Paper III: Indian Economy, industrial growth, and self-reliance policies.
Ease of Doing Science
Policy framework aimed at reducing bureaucratic hurdles and procurement delays to empower scientists and research institutions.
UPSC context
GS Paper III: R&D ecosystem, innovation, and Science & Technology policy.
Prelims Trap
"All central government departments are mandatorily required to procure goods exclusively through GeM, with no exceptions allowed."
While Rule 149 of GFR 2017 makes GeM mandatory for available goods, the Finance Ministry can and does grant sector-specific exemptions for specialized procurement.
Static Concepts Connected
What is the Government e-Marketplace (GeM) and its legal mandate?
- Nodal Agency: Launched in 2016, it functions under the Ministry of Commerce and Industry to facilitate transparent online procurement.
- GFR Mandate: General Financial Rules (GFR) 2017 made it mandatory for government ministries and departments to procure common-use goods and services available on the platform.
- Exemptions: Specialized items or services not available on GeM, or explicitly exempted by the Finance Ministry, can be procured outside the portal.
What are the structural characteristics of India's R&D expenditure?
- Low GDP Share: India spends roughly 0.6% to 0.7% of its GDP on R&D, significantly below the global average of 1.8% and trailing major economies.
- Public Sector Dominance: Unlike developed nations where private enterprises drive R&D, India's R&D expenditure is disproportionately funded by the public sector (government).
Cross-Topic Patterns
Bureaucratic standardization vs R&D agility
The clash between uniform e-governance tools (GeM) and specialized scientific needs highlights the 'Ease of Doing Science' debate, drawing parallels to regulatory friction seen in the ease of doing business.
Import substitution limits in specialized tech
Blanket import substitution policies under Make in India face limitations in deep-tech sectors. A lack of domestic precision manufacturing inevitably forces policy exemptions to sustain critical research.
GeM exemptions and the ₹200cr global tender limit are prime targets for a 2026 prelims statement on General Financial Rules (GFR) 2017.
Linked PYQs · 2
Linked PYQs · 2
- 2023MainsGS2
e-governance, as a critical tool of governance, has ushered in effectiveness, transparency and accountability in governments. What inadequacies hamper the enhancement of these features ?
- 2023MainsGS3
Faster economic growth requires increased share of the manufacturing sector in GDP, particularly of MSMEs. Comment on the present policies of the Government in this regard.
