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

Author

Listed:
  • Hazarika, Bhabesh

    (National Institute of Public Finance and Policy)

  • Jena, Pratap Ranjan

    (National Institute of Public Finance and Policy)

Abstract

The present study assesses the public procurement system and recent reform initia-tives 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 pro-cedures and rules, lack of transparency, widespread irregularities, and unavailability of suf-ficient procurement professionals. The recent initiatives to establish a consistent and trans-parent 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.

Suggested Citation

  • Hazarika, Bhabesh & Jena, Pratap Ranjan, 2017. "Public Procurement in India: Assessment of Institutional Mechanism, Challenges, and Reforms," Working Papers 17/204, National Institute of Public Finance and Policy.
    • Handle: RePEc:npf:wpaper:17/204
    Note: Working Paper 204, 2017
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    References listed on IDEAS

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    1. Pratap Ranjan Jena, 2017. "Indian Variant of MTEF: The Scope and Opportunities to Develop an Effective Budget Planning Process," Working Papers id:11564, eSocialSciences.
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    5. Walter Odhiambo & Paul Kamau, 2003. "Public Procurement: Lessons from Kenya, Tanzania and Uganda," OECD Development Centre Working Papers 208, OECD Publishing.
    6. S. Z. S. Tabish & Kumar Neeraj Jha, 2011. "Analyses and evaluation of irregularities in public procurement in India," Construction Management and Economics, Taylor & Francis Journals, vol. 29(3), pages 261-274.
    7. Sean Lewis-Faupel & Yusuf Neggers & Benjamin A. Olken & Rohini Pande, 2016. "Can Electronic Procurement Improve Infrastructure Provision? Evidence from Public Works in India and Indonesia," American Economic Journal: Economic Policy, American Economic Association, vol. 8(3), pages 258-283, August.
    8. Mohanty, Ranjan Kumar & Sahoo, Biresh K., 2017. "Examining the Eco-Macroeconomic Performance Index of India: A Data Envelopment Analysis Approach," Working Papers 17/202, National Institute of Public Finance and Policy.
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    Full references (including those not matched with items on IDEAS)

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    Cited by:

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    2. Tandon, Suranjali & Rao, R. Kavita, 2017. "Tax Compliance in India: An Experimental Approach," Working Papers 17/207, National Institute of Public Finance and Policy.
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    5. Raj Panda & Pradeep Guin & Kumar Gaurav, 2020. "Governance in Public Purchasing of Tertiary-Level Health Care: Lessons From Madhya Pradesh, India," SAGE Open, , vol. 10(3), pages 21582440209, July.
    6. Chhibber, Ajay & Gupta, Swati, 2017. "Bolder Disinvestment or Better Performance Contracts? Which Way Forward for India's State-Owned Enterprises," Working Papers 17/205, National Institute of Public Finance and Policy.

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    More about this item

    Keywords

    Public Procurement ; Institutional Mechanism ; Procurement Reform; ; India;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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