Leveraging Sustainable Public Procurement for Economic, Environmental, and Social Transformation in India: A Quantitative Analysis

Abstract

Public procurement constitutes approximately 20-25% of India's GDP, positioning it as a critical lever for driving sustainability across economic, environmental, and social dimensions. This study explores the transformative potential of Sustainable Public Procurement (SPP) in India through a quantitative evaluation of its impacts on cost efficiency, environmental outcomes, and socio-economic equity. Leveraging primary and secondary data, including case studies and surveys, the research applies advanced statistical techniques such as panel data analysis and Structural Equation Modeling (SEM) to analyze the benefits and challenges of SPP adoption in sectors such as infrastructure, energy, and waste management.

Key findings reveal that SPP adoption leads to 18% cost savings through life-cycle costing, a 22% reduction in CO₂ emissions, and the creation of over 350,000 jobs in green sectors. Sector-specific insights highlight that SPP in infrastructure can achieve INR 2 lakh crore annual savings and avoid 30 million tons of CO₂ emissions, while green energy procurement can save INR 12,500 crore annually and reduce emissions by 50 million tons. Waste management practices further contribute to a 25% reduction in landfill waste and the generation of 50,000 jobs annually.

The study underscores the critical role of policy coherence, procurement officer training, and vendor capacity-building in achieving these outcomes. While emphasizing the barriers such as fragmented policies and limited awareness, it provides actionable recommendations to enable nationwide SPP implementation. This research establishes a robust evidence base for policymakers to leverage public procurement as a tool for sustainable development, facilitating India’s transition to a greener and more equitable economy.