Ease of Doing Business for MSMEs: Purchase of defence-related items and providers by the Defence Ministry from micro, small and medium enterprises (MSMEs) and others on the federal government’s business-to-government (B2G) portal Government eMarketplace (GEM) jumped over 250 per cent within the monetary 12 months 2021-22 from the earlier 12 months. According to an announcement by the ministry on Saturday, procurement orders by way of GeM reached an all-time excessive of Rs 15,047.98 crore throughout FY22.
“The GeM was started in August 2016 to revamp the old tender process and bring greater probity and transparency in government procurement through digitisation. In a short span since its inception, the Ministry of Defence has embraced the digital drive and embarked on this path with absolute resoluteness. Despite multiple challenges on the ground, the results have been astounding,” the ministry mentioned.
The whole MSME distributors supplying to the Defence Public Sector Units (DPSUs) have been 10,506 until Q2 FY20, up from 8,643 in FY19, and seven,591 in FY18, based on the information shared by the previous MSME Minister Nitin Gadkari in Rajya Sabha in March 2020. By December 2021, the full rely had jumped to 12,000. As a consequence, the procurement worth by DPSUs from MSMEs had elevated from Rs 4842.92 crore in FY19 to Rs 5463.82 crore in FY21.
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Moreover, the federal government had launched ‘MAKE Projects’ in Defence Acquisition Procedure (DAP) 2020 to allow indigenous design and growth of defence tools each with authorities funding and trade funding. According to the authorities’s Make in India portal, the MAKE Projects has been instrumental in bettering MSMEs’ position in defence with over 40 per cent of the mission sanction orders issued to MSMEs and initiatives amounting to over Rs 1,000 crores reserved for MSMEs.
Meanwhile, GeM has total 42.35 lakh sellers and practically 60,000 authorities departments throughout ministries as consumers with over 1 crore orders value Rs 2.40 lakh crore processed up to now. Out of the full vendor rely, 7.70 lakh have been micro and small enterprises with 56 per cent share within the order worth on GeM.
Source: www.financialexpress.com”