Customer Care Phone Number

For decades, defence procurement was considered one of the most complex, siloed, and opaque segments of public expenditure. Stringent security protocols, specialized specifications, and multi-layered bureaucratic approvals often resulted in lengthy tendering cycles.

The Government e-Marketplace (GeM) has fundamentally disrupted this paradigm.

As of August 2026, the Department of Military Affairs (DMA) has transacted over ₹1.35 lakh crore in cumulative Gross Merchandise Value (GMV) on GeM. With defence acquisitions contributing over 14.93% of GeM’s total cumulative volume (which exceeds ₹20 lakh crore), the armed forces have emerged as the single largest and most influential buyer category on the platform.

Here is an in-depth analysis of how defence procurement on GeM transitioned from basic logistics to strategic acquisitions like tactical drones, space technology, and integrated digital systems.

Defence on GeM: Key Data & Performance Indicators

+-------------------------------------------------------------------------+
|                  Defence Procurement Footprint on GeM                   |
+-------------------------------------------------------------------------+
|  [ Department of Military Affairs (DMA) GMV ] :  ₹1.35 Lakh Crore+      |
|  [ Share in GeM's Cumulative GMV ]            :  14.93%+                |
|  [ Strategic Tech Partnerships ]               :  IN-SPACe & DFI (2025)  |
|  [ Integrated Ecosystems ]                    :  DPPP, CPPP & GeM       |
+-------------------------------------------------------------------------+

1. The Transformation: Modernising Military Supply Chains

Historically, armed forces procurement relied heavily on individual cantonment boards, local military formations, and depot-level offline tenders. This resulted in fragmented pricing, high inventory carrying costs, and vendor lock-ins.

By adopting GeM, the Indian Army, Indian Navy, Indian Air Force, Coast Guard, and paramilitary forces transitioned to an open digital marketplace.

Why Defence Adopted GeM at Scale:

1. Speed & Mission Readiness: Automated bidding, standard specifications, and electronic contracts slashed procurement cycle times from months to days.
2. Dynamic Price Discovery: Real-time price comparisons and electronic reverse auctions ensured the armed forces secured optimal commercial terms for public funds.
3. Auditability & Zero Corruption: Digital audit trails, paperless documentation, and transparent order tracking eliminated discretionary manual interventions.

2. Unifying the Architecture: DPPP Integration with GeM

A critical bottleneck in defence logistics was the co-existence of independent tender platforms. To address this, the government initiated the integration of the Defence Public Procurement Portal (DPPP) with GeM.

       [ Central Public Procurement Portal (CPPP) ]
                           ▲
                           │ Interoperable Data Layer
                           ▼
  [ GeM Digital Engine ] ◄───► [ Defence Public Procurement Portal (DPPP) ]
                           ▲
                           │ Standardized Catalogues
                           ▼
               [ Tri-Services & Armed Forces Buyers ]

• Unified Interoperability: Integrating DPPP with GeM creates a single point of visibility for defence tenders nationwide.
• Granular Price Intelligence: Armed forces buyers utilize GeM’s Availability Report and Past Transaction Summary alongside Last Purchase Price (LPP) data before issuing capital or operational purchases outside the platform.
• Standardized Vendor Verification: Cross-portal credentialing verifies that vendors meet statutory, security, and quality compliance mandates without requiring duplicate registrations.

3. Beyond Uniforms and Stationery: Procuring High-End Strategic Tech

While initial defence buying focused on administrative equipment, specialized clothing, ration logistics, and medical supplies, GeM has rapidly expanded into deep-tech, aerospace, and tactical hardware.

In April 2025, GeM executed two landmark strategic partnerships that redefined military tech acquisition:

A. Partnership with IN-SPACe (Space-Tech Procurement)

• Objective: Streamline the acquisition of space-based assets, satellite communication hardware, geospatial intelligence (GEOINT) services, and indigenous space components.
• Impact: Enables defence research laboratories, military intelligence wings, and strategic forces to procure space-grade technology directly from Indian private space startups and aerospace manufacturers.

B. Partnership with Drone Federation of India (DFI)

• Objective: Standardise and accelerate the direct procurement of indigenous Unmanned Aerial Vehicles (UAVs), tactical reconnaissance drones, counter-drone systems, and payload delivery platforms.
• Impact: High-altitude logistics drones for forward posts in Ladakh, the Northeast, and coastal surveillance systems are now listed under verified, standardized technical categories on GeM, removing the friction of conventional bespoke tenders.

4. Catalysing ‘Make in India’ and Defence MSMEs

Defence spending on GeM has acted as a massive demand aggregator for domestic manufacturers, aligning directly with Aatmanirbhar Bharat (Self-Reliant India) and indigenisation positive lists:

  Traditional Defence Supply               GeM-Enabled Defence Ecosystem
  --------------------------               ------------------------------
  [Foreign OEMs / Large Cartels]     ──►   [Local MSMEs & Deep-Tech Startups]
  [Rigid Offline Prequalification]   ──►   [Transparent Digital Listings]
  [High Caution Money / Guarantees]  ──►   [Zero Caution Money & Easy Capital]

1. Empowering MSME Tier-2 & Tier-3 Suppliers: By removing Caution Money requirements and enabling fast payments, small precision manufacturers supplying components to military ordnance units can directly access defence contracts.
2. Supporting Innovations for Defence Excellence (iDEX) Startups: Homegrown startups developing military AI, secure communications, and ballistic materials gain immediate market access to military procurement managers.
3. GeMSahay Working Capital: Small engineering units fulfilling defence orders can leverage the GeMSahay app to receive instant, collateral-free credit against their purchase orders from institutions like Union Bank of India.

5. Strategic Takeaways and Future Outlook

As GeM moves into its 11th year, defence procurement is set to become even more automated through AI-driven demand forecasting, predictive maintenance service contracts, and lifecycle cost analysis.

The crossing of the ₹1.35 lakh crore milestone by the Department of Military Affairs is proof that high-security, mission-critical public buying can thrive in an open, transparent, and digital-first marketplace.

Frequently Asked Questions (FAQs)

Q1. How much has the Department of Military Affairs (DMA) procured through GeM?

As of 6 August 2026, the Department of Military Affairs has transacted over ₹1.35 lakh crore in cumulative Gross Merchandise Value (GMV) on the GeM portal.

Q2. What percentage of GeM’s total sales comes from Defence procurement?

Defence procurement contributes over 14.93% of GeM’s total cumulative GMV, making it the single largest buying sector on the platform.

Q3. What is the role of IN-SPACe and DFI on GeM?

In April 2025, GeM partnered with IN-SPACe (Indian National Space Promotion and Authorization Centre) for space-technology procurement and the Drone Federation of India (DFI) for standardising the acquisition of indigenous drones and UAV solutions for government and armed forces buyers.

Q4. How does GeM integrate with the Defence Public Procurement Portal (DPPP)?

GeM is integrating the functionalities of DPPP to establish an interoperable, unified procurement network. This ensures centralized visibility of military tenders, standardized technical specs, and seamless price analytics across all defence entities.