Ministry of Defence Leads the Way on Government e-Marketplace (GeM) as Largest Procuring Entity

The Ministry of Defence has ascended to the forefront among the 56 Ministries and Departments engaged with the Government eMarketplace (GeM). It has achieved this distinction by leading in both order value and order quantity. This achievement underscores the Ministry’s pivotal role in propelling the Gross Merchandise Value (GMV) of GeM to an impressive Rs 73,225.30 crore as of September 12, 2023. 

In the current fiscal year alone, procurement through GeM has already surged to an impressive Rs 18,790.60 crore as of the same date. To put this into perspective, the Ministry’s order value for the fiscal year 2022-23 was Rs 28,732.90 crore, demonstrating substantial growth from the Rs 15,091.30 crore recorded in the fiscal year 2021-22. Additionally, in the fiscal year 2022-23, the Defence Public Sector Undertakings (DPSUs), under the Department of Defence Production, facilitated the sale of Goods and Services worth Rs 2,642.66 crore on GeM. 

This remarkable milestone of procuring goods and services exceeding Rs 18,000 crore reflects an extraordinary average daily order value of Rs 109 crore in the current financial year. This achievement is the result of the active participation of more than 19,800 buyers from across the country, who have collectively placed over 3 lakh orders. 

The Ministry of Defence’s consistent contribution to GeM’s overall GMV has remained robust, holding steady at approximately 15% since GeM’s inception and increasing to 16% for the current financial year. Furthermore, out of the 17,026,945 orders placed on GeM since its inception, the Ministry of Defence has played a substantial role, accounting for nearly 28% of the total of 4,761,585 orders. 

Launched in August 2016, GeM was created to modernize the traditional tender process and infuse greater transparency and integrity into government procurement through digitalization. Over the past seven years, the Ministry of Defence has wholeheartedly embraced this digital transformation. 

The Ministry of Defence’s impressive procurement achievements through GeM underscore the platform’s effectiveness and efficiency in facilitating transparent and streamlined procurement processes. The widespread adoption of GeM by various defence entities further highlights its success in simplifying and enhancing the overall procurement landscape.  

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.