Public Procurement and CSR
Public Procurement and CSR
12 min read · Updated 2026-05-25
What is Public procurement?
Public procurement is how government bodies buy the goods, services and works they need — roughly a quarter of India's GDP — governed by the General Financial Rules 2017 and routed increasingly through the Government e-Marketplace launched on 9 August 2016; there is no unified procurement Act. Corporate Social Responsibility is separately mandated by Section 135 of the Companies Act 2013 at 2% of average net profit.
The story
It is 9 August 2016, India's Independence Day eve. Prime Minister Narendra Modi launches a portal that will, by 2026, route over ₹4 lakh crore of government purchasing through it — the Government e-Marketplace (GeM). The same idea — bring all government purchases to one transparent + competitive + auditable platform — had been a recurring theme in Vohra Committee 1993, CVC Procurement Manual 2000, ARC II 2008, CAG performance audits 2010-2014. Indian government had spent ~₹20 lakh crore a year (about 25% of GDP) on goods + services + works — and almost none of it through a unified transparent process. GeM changed that overnight.
Three years earlier, on 29 August 2013, India became the world's first country to legally mandate corporate social responsibility. Section 135 of the Companies Act 2013 required eligible companies to spend 2% of their average net profit on CSR activities each year. By 2023-24, ₹35,000+ crore was being channelled annually through CSR — supporting health, education, sanitation, rural development, environment. CSR turned from voluntary philanthropy to statutory corporate citizenship.
Public procurement + CSR are the two ends of the same governance spectrum — how the state spends, and how corporates contribute. Both are about probity, transparency, accountability, and outcomes. Both have evolved dramatically in the last decade.
Why this matters for UPSC
Public procurement appears in Prelims occasionally (GFR 2017, GeM date, CCEA jurisdiction, Vohra Committee). CSR appears every year in Prelims + Mains (Section 135, Schedule VII activities, 2% rule, CSR-2 form). Both are Mains GS-II + GS-III workhorse for citizen-centric governance, fiscal accountability, public-private partnership, corporate governance. Interview boards routinely test the GeM impact and CSR effectiveness debates.