India sees growth in online defence procurement

<p>India is seeing strong growth in the use of online procurement practices in the defence sector, a senior official in the Ministry of Defence (MoD) in New Delhi has revealed.</p>
<p>Ajay Kumar, defence secretary in the MoD’s Department of Defence, wrote in a recent tweet that “defence services and organisations” in India have increased the use of online procurement methods by 72% in the fiscal year 2020–21 compared with 2019–20.</p>
<p>Such online methods are provided by the portal ‘Government eMarketplace’, which was launched in 2016 as a means to support public procurement activity led by government ministries and related state-owned public sector undertakings (PSUs).</p>
<p>Data provided by Kumar in his tweet shows that the MoD has expanded its use of the Government eMarketplace significantly since the portal was launched.</p>
<p>In 2016–17 the value of contracts that progressed through Government eMarketplace was just INR190 million (USD2.6 million), which increased to INR5.5 billion in 2017–18, and INR17.25 billion in 2018–19. In 2019–20 – up until 30 November 2019 – the value of contracts was INR14 billion, while the full-year total was INR28.1 billion.</p>
<p>In 2020–21 – until 30 November 2020 – the value of contracts to progress through the Government eMarketplace was INR24.25 billion, a year-on-year increase of 72%.</p>
<p>Government eMarketplace was formed to improve the speed, transparency, and cost-effectiveness of government procurement in India. It is also aimed at supporting small private-sector businesses in gaining access to public procurement contracts.</p>
<p>In defence, the portal is used mainly for tier-two and tier-three supplies in support of major production programmes undertaken by defence PSUs such as Hindustan Aeronautics Limited (HAL), Bharat Dynamics Limited (BDL), and Bharat Electronics Limited (BEL).</p>
Source: IHS Jane’s 360
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