The Indian Army is set to significantly ramp up its procurement through the Government e-Marketplace (GeM) in the coming financial year, with a projected spending of ₹16,000 crore on spares, medicines, and work modules. This marks a remarkable increase from ₹21 crore in 2017 to over ₹15,433 crore in FY 2023-24, indicating a clear shift towards digital procurement.
This strategic move will enable nearly 50% of the Army's revenue budget to be managed via the GeM, showcasing a significant digital transformation in acquisition.
This year, critical items such as rations, medical equipment, and expendable stores, amounting to ₹5,000 crore, were onboarded, adding to the ₹9,202 crore worth of orders placed through GeM in FY 2022-23.
The GeM, mandated under the General Financial Rules 2017, has become the Army's preferred platform for procurement due to its price discovery tools, transparency, and ease of business.
Furthermore, the Army is undergoing a comprehensive financial overhaul, implementing automation to enhance efficiency and transparency in financial management. The Financial Planning Directorate is spearheading this initiative, with basic automation already in place.
A more ambitious plan is the conceptualization of the Indian Army Financial Information System (IAFIS), aiming to achieve a fully integrated financial automation system. The project's RFP was uploaded on GeM on August 2, 2024, after extensive collaboration with various organizations.
The increased adoption of competitive bidding, accounting for 80% of procurement, has led to substantial savings. These measures, coupled with the Army's focus on fostering SMEs and digitizing operations, have significantly improved budget management, ensuring real-time monitoring, enhanced transparency, and traceable audit trails.
The Indian Army's proactive embrace of digital procurement and financial automation exemplifies a commitment to modernization, efficiency, and transparency, setting a benchmark for other organizations in the country.
