India’s Ministry of Defence has made an exceptional impact on the Government e-Marketplace (GeM), a digital platform for public procurement. The Ministry stands as the leader among 56 Ministries and Departments, both in terms of order value and quantity, contributing 16% to GeM’s overall Gross Merchandise Value (GMV) for the current financial year.
GeM is an online platform started in August 2016 to bring transparency and efficiency to the government’s buying process. As of September 12, 2023, the platform’s GMV has reached a notable Rs. 73,225.30 Cr. The Ministry of Defence has significantly contributed to this, as its procurement through GeM for the current financial year stands at an impressive Rs. 18,790.60 Cr.
Compared to the fiscal year 2021-22, where the order value was Rs. 15,091.30 Cr, there has been a notable increase. The order value in the fiscal year 2022-23 was Rs. 28,732.90 Cr. Under the Department of Defence Production, the Defence Public Sector Undertakings (DPSUs) have also been actively participating, with sales of goods and services worth Rs. 2,642.66 Cr on GeM in FY 2022-23.
“The significant milestone of procuring goods and services worth over Rs. 18,000 Cr, underscores an outstanding average daily order value of Rs 109 Cr in the current financial year,” the Ministry pointed out. This has been possible due to the active participation of more than 19,800 buyers across the country, who have collectively placed over 300,000 orders.
The Ministry’s contribution to GeM’s overall GMV has been consistent, at about 15% since its launch, rising to 16% for the current financial year. Moreover, of the total 17,026,945 orders placed on GeM, the Ministry of Defence has accounted for nearly 28% of 4,761,585 total orders.
GeM has not only modernized the conventional tender process but also enabled better transparency in government procurement. “The MoD’s impressive procurement through GeM underlines the platform’s effectiveness and efficiency in facilitating transparent and streamlined procurement operations,” the report stated.