Defence Ministry is top buyer of MSME Goods in 2022

January 31, 2023

The Government e–Marketplace was launched in 2016. It is an online platform used for procuring goods and services online. The main aim of GeM is to increase transparency, promote Aatma Nirbhar Bharat, and support small and local sellers. Recently, the GeM tweeted that in 2022, Defence Ministry made the highest procurement from the MSME sellers.

Defence Ministry: Top Buyer

In 2022, the Defence Ministry procured Rs 16,747 crores worth of goods and services from the MSME sector. This was 250% higher than that of the procurement made in 2021. Of all the states UP made the highest procurement. UP bought Rs 9,642 crores of goods and services through GeM.

GeM in 2022

In 2022, the turnover of GeM was Rs 106,647 crores. This is expected to double in 2023. As compared to 2016, when GeM was first launched, its turnover had increased by 17 times.

Major challenges faced by GeM

GeM faces difficulty to comply with General Financial Rules (Rule 149). Rule 149 says that all common goods and services should be compulsorily procured on the platform.

Apart from GeM, there are other government portals. The increase in traders in those portals affects the efforts of GeM. The government of India should integrate them under one roof. Or make separate portals for individual commodities.

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