The defence ministry has made an astounding accomplishment by surpassing the Rs 1 lakh crore mark in terms of total order value transacted through the government e-Marketplace (GeM) portal, also known as Gross Merchandise Value (GMV), the Ministry of Commerce and Industry said in a statement on Wednesday.
Of this, transactions worth around Rs 45,800 Crore have been awarded in the current financial year. From procurement of general store items like eggs to missile systems and critical defence acquisitions, GeM has helped MoD execute more than 5.47 lakh orders, it added.
In line with GeM’s core value of maximising social inclusion, 50.7% of the total orders, amounting to Rs 60,593 Crore, have been awarded to Micro and Small Enterprises (MSEs) by MoD buyers, driving India’s economy closer to self-reliance.
“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. This milestone underscores the effort and commitment of the Ministry of Defence to embrace the change and set out as a key propeller of Prime Minister Narendra Modi’s vision of a self-reliant India,” said CEO, GeM, PK Singh.
Ministry of Defence has been an early adopter of GeM, since its inception. The immense trust placed in the portal by nearly 19,800 MoD buyers across the country, including remote far flung areas like North-Eastern States, Leh-Ladakh, & various Island Territories, have enabled it to bag this remarkable achievement.
Furthermore, the engagement of Defence PSUs on the GeM platform has not only facilitated procurement but has also facilitated sales, marking a paradigm shift in the procurement landscape.
Through initiatives like demand aggregation modules, GeM continues to deliver cost-effectiveness and efficiency in government transactions.
By pooling requirements for similar products across different organisations, GeM is maximizing the benefits of large-volume procurement for buyers like the Ministry of Defence, demonstrating its commitment to driving transformative change in government procurement practices.