Highlighting the efficacy of government e-marketplace (GeM) in public spending optimization, the Ministry of Defence (MoD) has surpassed the monumental ₹1 Lakh Crore mark in total order value transacted through the GeM portal. This milestone, also known as Gross Merchandise Value (GMV), underscores MoD’s resolute commitment to modernizing procurement practices in the Defence sector.
Within the current financial year, transactions worth approximately ₹45,800 Crore have been awarded, spanning from the procurement of general store items like eggs to crucial defence acquisitions including missile systems. With over 5.47 lakh orders executed, MoD emerges as the first central government entity to achieve this remarkable figure, setting a precedent for efficient public spending.
CEO of GeM, Shri P. K. Singh, emphasized the Ministry’s pioneering role in embracing change and aligning with Prime Minister’s vision of a self-reliant India. The success story of GeM reflects MoD’s dedication to optimizing procurement processes and promoting indigenous industries.
In line with GeM’s core value of fostering social inclusion, MoD buyers have allocated 50.7% of the total orders, amounting to ₹60,593 Crore, to Micro and Small Enterprises (MSEs). This significant allocation contributes to bolstering India’s economy and advancing towards self-reliance.
MoD’s early adoption of GeM and the widespread trust in the platform, evident from nearly 19,800 MoD buyers across the country, including remote areas such as North-Eastern States, Leh-Ladakh, and various Island Territories, have been instrumental in achieving this milestone.
Moreover, the engagement of Defence Public Sector Undertakings (PSUs) on the GeM platform has not only streamlined procurement processes but also facilitated sales, indicating a paradigm shift in the procurement landscape.
GeM’s initiatives such as demand aggregation modules have contributed to cost-effectiveness and efficiency in government transactions. By consolidating requirements for similar products across different organizations, GeM maximizes the benefits of large-volume procurement for buyers like the Ministry of Defence, exemplifying its commitment to transformative change in government procurement practices.
