Advancing Gender-Responsive Procurement: Strategies for Inclusive Corporate Supply Chains

Gender-responsive procurement (GRP) is a strategic approach that embeds gender considerations into procurement policies and practices, fostering gender equality and empowering women entrepreneurs. By actively integrating women-owned businesses into supply chains, GRP not only strengthens business ecosystems but also drives economic growth and social progress. In India, with nearly 15 million women-owned MSMEs—over 70% of which operate in the manufacturing sector, often in home-based and informal settings—GRP presents a critical opportunity to enhance inclusive economic participation and unlock the full potential of women-led enterprises.

Current Landscape of Procurement Policies in India

The Government of India has strategically leveraged public procurement to support the growth of micro and small enterprises (MSEs), including those owned by women. Under the Public Procurement Policy for MSEs, first introduced in 2012 and revised in 2018, all Central Ministries, Departments, and Public Sector Undertakings (PSUs) are mandated to source at least 25% of their annual procurement from MSEs. Within this allocation, 3% is specifically reserved for women-owned MSEs, promoting greater inclusivity in government contracting.

To facilitate the participation of MSEs in public procurement, the policy provides key benefits such as free tender sets, exemption from earnest money deposits, and price preferences under certain conditions. These provisions aim to reduce entry barriers and create a more level playing field for small businesses, particularly women-led enterprises.

In line with these policy measures, the Government e-Marketplace (GeM) was launched in 2016 to enhance procurement efficiency, transparency, and accessibility. GeM has become a critical enabler for women entrepreneurs, offering them a digital platform to access government procurement opportunities. As per recent reports, over 1.69 lakh women-led MSEs are registered on GeM, collectively fulfilling approximately 23 lakh orders. This initiative has streamlined procurement processes, reduced transaction costs, and provided greater market visibility for women entrepreneurs, ultimately fostering their business growth and economic empowerment.

Challenges Faced by Women Entrepreneurs in Public Procurement

​Despite the Government of India’s mandate for Central Ministries, Departments, and Public Sector Enterprises (CPSEs) to procure at least 3% of their annual purchases from women-owned Micro and Small Enterprises (MSEs), actual procurement figures have consistently fallen short of this target. As of recent data, procurement from women-owned MSEs stands at approximately 1.26%, involving nearly 15,000 women entrepreneurs. This reflects a significant gap between policy objectives and actual outcomes.​ Furthermore, data from the fiscal year 2023-2024 indicates a decline in overall procurement from MSEs. As of April 11, 2024, procurement from MSEs was ₹58,744 crore, representing 34.2% of total procurement worth ₹1.71 lakh crore by CPSEs. This is a decrease from ₹64,721 crore (37% of total procurement) in the previous fiscal year. The number of MSEs benefiting from procurement also dropped to 1.95 lakh in FY24 from 2.36 lakh in FY23

Several factors contribute to this disparity:

  1. Awareness and Accessibility: Many women entrepreneurs, particularly those in rural areas, lack awareness of public procurement opportunities and the procedures involved. The complexity and perceived bureaucratic nature of the procurement process further deter their participation (SEWA Cooperative Federation, 2022).
  2. Financial Constraints: Limited access to credit and financial resources hampers the ability of women-owned businesses to meet the requirements of large procurement contracts. Although schemes like Stand-Up India aim to address this by facilitating bank loans ranging from ₹10 lakh to ₹1 crore for women entrepreneurs, the uptake and impact of such schemes need to be more widespread (Reserve Bank of India, 2023).
  3. Capacity and Scale: Many women-led enterprises operate at a micro level with limited production capacities, making it challenging to fulfill large orders or meet stringent quality standards demanded in public procurement.
  4. Technological Barriers: The digital nature of platforms like GeM requires a certain level of technological proficiency, which may be lacking among some women entrepreneurs, especially those from marginalized communities (SEWA Cooperative Federation, 2022).

International Best Practices in Gender-Responsive Procurement

Several countries and organizations have implemented successful GRP initiatives, providing valuable insights and models for others to emulate. Some have discussed below:

ITC SheTrades Initiative in Ecuador: Launched in December 2022 and running until December 2025, this project aims to enhance women’s participation in agricultural public procurement. It focuses on identifying opportunities, building capacities, and facilitating policy discussions to improve gender-sensitive procurement systems. ​

Gulf African Bank’s Supplier Diversity Program in Kenya: Since 2015, the bank has allocated 20% of its procurement opportunities to women-owned businesses. The program offers capacity-building workshops on procurement readiness, tax, tendering, and contract management, with forums held in Nairobi, Mombasa, and Nakuru. ​

UN Women’s Gender-Responsive Procurement Initiatives: By early 2024, over 9,000 businesses had adopted the Women’s Empowerment Principles (WEPs), reflecting a growing commitment to gender equality in procurement. UN Women continues to provide guidance and model policy frameworks to support GRP integration across various sectors. ​

Brazil’s Support for Family Farmers: In November 2024, the World Bank approved a $1.6 billion program to support family farmers in Brazil, aiming to increase market access, productivity, and climate resilience. This initiative is expected to benefit 421,000 family farmers, many of whom are women, thereby promoting gender-responsive procurement in the agricultural sector.

Strategies for Enhancing Gender-Responsive Procurement in India

For businesses looking to integrate Gender-Responsive Procurement (GRP) into their operations, a structured approach can help bridge existing gaps and enhance the participation of women entrepreneurs in supply chains. Implementing GRP not only contributes to gender equality but also drives innovation, fosters supplier diversity, and strengthens corporate sustainability performance.

A fundamental step towards achieving this is capacity building and training. Women entrepreneurs often face challenges in navigating complex procurement processes, which can limit their access to opportunities. To address this, companies must invest in targeted training programs that equip women with the skills and knowledge required to participate effectively in procurement. Workshops focused on compliance, bidding requirements, and contract management can provide practical insights, while mentorship initiatives can bridge the gap between women-owned businesses and procurement officers. Stronger networks and exposure to industry best practices empower women entrepreneurs to compete more effectively in procurement markets.

Another critical factor in promoting gender-responsive procurement is financial inclusion and credit accessibility. Many women-led micro, small, and medium enterprises (MSMEs) struggle to access credit, limiting their ability to meet procurement demands. Partnering with financial institutions to develop customized credit lines and financing solutions tailored for women-owned businesses can provide a much-needed boost. Additionally, corporates can introduce early payment schemes or supplier financing programs to ensure stable cash flows for women entrepreneurs, enabling them to scale their operations and improve service quality. Enhanced financial support ensures that women-owned businesses can expand their capacity and compete on a level playing field.

The simplification of procurement procedures is also essential for fostering greater participation. Bureaucratic hurdles often discourage small businesses from engaging in procurement opportunities. Streamlining documentation requirements, introducing user-friendly e-procurement platforms, and reducing prior turnover eligibility criteria for women-led enterprises can significantly increase their involvement. Furthermore, allocating ‘set-aside’ contracts or reserved quotas for women-owned businesses in both public and corporate procurement can serve as a strong incentive for their growth. By making procurement processes more accessible, businesses can unlock a diverse range of suppliers and enhance competition.

Creating awareness and outreach campaigns is another key strategy. Many women entrepreneurs remain unaware of available procurement opportunities and the eligibility criteria to participate. Companies and government agencies can address this gap by conducting targeted outreach programs, disseminating information about procurement tenders, and highlighting success stories of women-led businesses. A centralized online platform that consolidates tender information, training resources, and networking opportunities can serve as a valuable resource. Industry associations should also be encouraged to integrate gender-responsive procurement into their engagement with MSMEs, ensuring wider outreach and participation.

To ensure long-term success, businesses must establish monitoring, accountability, and impact measurement mechanisms. Setting clear procurement targets for women-owned businesses and tracking progress through data-driven approaches ensures consistency in implementation. Independent audits and performance reviews can further enhance transparency and credibility. Publishing annual reports detailing procurement spending on women-led businesses and showcasing their economic impact can strengthen investor and stakeholder confidence in a company’s commitment to gender-inclusive procurement.

Another important element is incentivizing gender-responsive procurement compliance. Corporates and ministries that meet or exceed procurement targets for women-owned businesses should be recognized through awards, certifications, and other incentive programs. Governments and regulatory bodies can further drive compliance by offering tax benefits or procurement score advantages to companies demonstrating leadership in supplier diversity. Positive reinforcement encourages businesses to proactively integrate women entrepreneurs into their supply chains, making gender-responsive procurement a mainstream practice.

Finally, strengthening public-private partnerships (PPPs) can play a transformative role in creating an enabling environment for women entrepreneurs. Collaboration between government agencies, multinational corporations, and industry bodies can lead to policies that support women-led enterprises. Partnerships with non-governmental organizations (NGOs) and development agencies can provide additional capacity-building initiatives and market access support. By fostering gender-inclusive supplier development programs, businesses can contribute to the long-term sustainability of women-led enterprises, ensuring their continued participation in procurement ecosystems.

UN Global Compact Network India’s (UN GCNI) Contribution: Empowering Women as Sustainability Leaders

Recognizing the power of gender-responsive procurement in advancing sustainability and corporate resilience, UN Global Compact Network India (UN GCNI) has launched the Empowering Women as Sustainability Leaders: Supply Chain Initiative. This initiative is designed to integrate gender-responsive leadership into supply chains, providing businesses with the tools and frameworks needed to enhance their environmental, social, and governance (ESG) impact.

Through this initiative, UN GCNI is:

  • Facilitating capacity-building programs for women entrepreneurs to strengthen their participation in corporate and public procurement.
  • Engaging businesses in tailored training sessions on how to implement gender-responsive procurement policies effectively.
  • Providing access to assessment tools and best practices to help companies measure and improve their procurement strategies.
  • Creating a platform for collaboration between corporates, policymakers, and women-led enterprises to drive systemic change in supply chains.
  • Encouraging businesses to set gender-inclusive procurement targets and integrate supplier diversity as a core component of their sustainability agendas.

By aligning procurement strategies with this initiative, companies can enhance business resilience, improve supply chain performance, and contribute meaningfully to gender equality and sustainable development.

References

  • Ministry of Micro, Small & Medium Enterprises. (2021). Public Procurement Policy for MSEs.
  • Reserve Bank of India. (2023). Stand-Up India Scheme.
  • The Financial Express. (2022). Women-led MSMEs in Public Procurement.
  • OECD. (2021). Gender-Responsive Public Procurement Guidelines.
  • UN Women. (2022). Guidance on Gender-Responsive Procurement.
  • World Bank. (2020). Brazil’s National School Feeding Program.
  • ITC SheTrades. (2021). Gender-Responsive Public Procurement in Ecuador.
  • IFC. (2022). Unilever’s Sourcing2Equal Program.
  • Open Global Rights. (2019). Gender-Responsive Procurement Policies Worldwide.
  • Australian Government. (2018). Principles for Addressing Human Trafficking in Procurement.

To learn more about how your organization can participate in this initiative, reach out to ges@globalcompact.in