Goyal: Defence Orders Now ~15% of All GeM Procurements

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Goyal: Defence Orders Now ~15% of All GeM Procurements

Synopsis

On GeM's tenth anniversary, Commerce Minister Piyush Goyal revealed that defence orders now constitute nearly 15% of all procurements on the Government e-Marketplace, underscoring the platform's expansion into sensitive, high-value sectors since its 2016 pilot launch.

Key Takeaways

Defence orders on GeM account for nearly 15 per cent of all procurements on the platform, according to Minister Piyush Goyal .
GeM was launched on 9 August 2016 as a pilot under the Ministry of Commerce and Industry and is now ten years old.
The platform has expanded well beyond general goods into complex categories including defence spares and equipment.
The Ministry of Defence is now among the largest users of the transparent, auditable digital procurement system.
The defence share signals that even security-sensitive ministries are integrating GeM into their procurement architecture.

Ten years after a quiet pilot launch, India's Government e-Marketplace has grown into a procurement powerhouse — and the defence sector is now one of its biggest customers. Union Commerce and Industry Minister Piyush Goyal marked the platform's tenth anniversary on 10 August 2026 by highlighting a striking milestone: defence orders on GeM now account for nearly 15 per cent of all procurements on the portal.

From a pilot project to a defence procurement channel

GeM was launched on 9 August 2016 as a lean pilot under the Ministry of Commerce and Industry, designed to cut out middlemen, reduce corruption, and throw open government buying to a wider vendor base. What began as a marketplace for routine office supplies has since expanded into complex, sensitive categories — including defence spares and equipment procured by the Ministry of Defence.

The 15 per cent share is a signal of how far that expansion has travelled. Defence procurement in India has historically been one of the most opaque and process-heavy segments of government spending. Moving a meaningful slice of it onto a transparent digital platform represents a structural shift, not just an administrative tweak.

Why the defence share on GeM matters

Every rupee routed through GeM is logged, audited, and traceable — a sharp contrast to legacy procurement channels. For the armed forces, that means faster vendor discovery, competitive pricing, and a documented trail for items ranging from logistics equipment to operational spares. For smaller vendors and Make in India manufacturers, it means a level playing field to bid on defence contracts that were once accessible only through long-established relationships.

The broader push to digitise public procurement has been consistent across the platform's decade-long run, but the defence segment's growth stands out. It suggests that even ministries with the most stringent security and quality requirements are finding GeM's architecture fit for purpose.

A decade of GeM — the scoreboard at ten

The #10YearsOfGeM marker arrives as the platform cements its place as a central pillar of India's public financial management. Minister Goyal has been a consistent champion of GeM's performance metrics, regularly flagging order volumes, vendor counts, and sectoral penetration as proof points for the government's governance-through-technology agenda.

With the defence share now approaching one-sixth of all GeM transactions, the next question is how much further that number can climb — and which other high-security procurement categories follow the same path onto the open marketplace.

Point of View

It reinforces GeM as a signature governance achievement ahead of what is likely to be an election-cycle narrative about delivery. The deeper significance lies in institutional change: defence procurement's migration to an open marketplace chips away at one of India's most entrenched legacy procurement cultures. If the trend holds, it could accelerate pressure on other high-security ministries — space, atomic energy — to follow suit.
NationPress
11 Aug 2026

Frequently Asked Questions

What is GeM and when was it launched?
GeM, or Government e-Marketplace, is India's central online public procurement portal. It was launched on 9 August 2016 as a pilot project under the Ministry of Commerce and Industry to improve transparency and widen vendor participation in government buying.
What share of GeM procurements do defence orders make up?
According to Union Commerce Minister Piyush Goyal , defence orders account for nearly 15 per cent of all procurements on the GeM platform, a figure he highlighted on the portal's tenth anniversary.
Why is defence procurement being done through GeM?
Routing defence purchases through GeM makes transactions transparent, auditable, and competitive, reducing reliance on opaque legacy channels and opening opportunities for smaller and Make in India vendors.
Who oversees the GeM portal?
GeM operates under the Ministry of Commerce and Industry , which is currently headed by Union Minister Piyush Goyal .
What does GeM's 10-year anniversary signify?
The #10YearsOfGeM milestone marks a decade since the platform's 2016 pilot launch, during which it has grown from a marketplace for routine goods into a channel handling complex and sensitive procurement categories including defence equipment.
Nation Press
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