GeM portal clocks ₹1 lakh cr order value from defence ministry

The Ministry of Defence surpassed the ₹1 lakh crore mark in terms of total order value transacted through India's public procurement Government e-Marketplace (GeM) portal.

"The Ministry is the first central government entity to cross this staggering figure, exemplifying its resolute commitment towards optimising public spending in the Defence sector," says GeM CEO PK Singh.

50.7% of the total orders, amounting to ₹60,593 crore, have been awarded to micro and small enterprises by MoD buyers, driving India’s economy closer to self-reliance, the ministry of commerce and industry says.

Since its inception, the defence ministry has been an early adopter of GeM.

By pooling requirements for similar products across different organisations, GeM is maximising the benefits of large-volume procurement for buyers like the Ministry of Defence, the commerce ministry says.

The Centre set up the Government e-Marketplace (GeM) for the procurement of goods and services by various government departments, agencies, and public sector undertakings. It was launched in August 2016 as a part of the government's ‘Digital India’ initiative to bring transparency, efficiency, and cost-effectiveness to public procurement. GeM aims to simplify the public procurement process, reduce paperwork, and promote the use of digital technology for government procurement. The General Financial Rules 2017 mandates all ministries and departments to procure goods and services available on GeM from GeM.

With the fourth quarter of this financial year still awaiting its end, the integrated digital platform has recorded a Gross Merchandise Value of ₹3 lakh crore, significantly surpassing the total GMV recorded at the end of the previous fiscal year at ₹2 lakh crore. There has been a notable increase in the daily average GMV transaction value during this period, rising from ₹504 crore in FY23 to ₹914 crore as of February 12, 2024.

GeM directly links over 20 lakh sellers and service providers across the country with more than 3 lakh Government buyers. By digitally integrating all stakeholders in the public procurement process, GeM has eliminated harmful practices like collusion, corruption and bribery in government spending, thereby inculcating greater transparency in public finances, the government says.

The platform currently showcases more than 12,200 products and services categories with offerings covering all complex and dynamic requirements of government buyers across the country.

Over the past three years, GeM has strategically expanded its services bouquet, resulting in a remarkable increase in services procurement – from approximately ₹66,000 crore in FY23 to ₹1,30,984 crore in FY24 (As of February 12, 2024). Notably, the services sector's contribution to GeM's GMV has surged by 98% from last year, with services procurement expected to exceed ₹1.5 lakh crore by the end of this fiscal year.

While central entities have contributed to 82% of the current GMV, increased engagement from States has propelled the platform's growth. States have cumulatively placed orders worth Rs 49,302 crore in FY 23-24, reflecting a 56% increase compared to the corresponding period in the previous fiscal year. States like Uttar Pradesh, Gujarat, Maharashtra, Madhya Pradesh and Delhi have emerged as the top procurers on the platform in terms of order value.