Statistical Insight on e-Procurement in India from 2014 to 2023

Over the decade, there has been a remarkable increase in the adoption and utilization of eProcurement. The number of tenders processed has grown exponentially, from 308,854 in 2014-15 to an impressive 12,045,809 in 2023-24, representing a staggering growth of over 3800%. This substantial increase indicates a significant shift towards digital procurement methods and suggests widespread acceptance of the eProcurement system across various government departments and agencies. The value of tenders processed through the system has also seen considerable growth, albeit with some fluctuations. Starting from ₹477,517 crore in 2014-15, it peaked at ₹3,407,399 crore in 2022-23, before slightly decreasing to ₹3,202,871 crore in 2023-24. This represents an overall increase of about 570% over the decade. The fluctuations in tender values, particularly the dips observed in 2018-19 and 2019-20, could be attributed to various economic factors or changes in government spending patterns. The most striking growth is seen in the number of bids received through the eProcurement system. From 738,007 bids in 2014-15, the number has skyrocketed to 33,515,082 in 2023-24, marking an astronomical increase of over 4400%. This tremendous growth in bid submissions indicates increased competition among suppliers, potentially leading to better value for money in government procurements.

The consistent year-on-year increase in all three metrics (tenders processed, value of tenders, and bids) underscores a successful digital transformation in India’s procurement processes. This shift likely contributes to increased transparency, efficiency, and accessibility in government procurement. The disproportionate growth in the number of bids compared to the number of tenders suggests that the eProcurement system has significantly lowered barriers to participation for potential suppliers. This democratization of the bidding process could lead to more competitive pricing and a diverse supplier base. Despite the massive increase in the number of tenders and bids, the system has managed to handle the growth effectively. This indicates substantial improvements in the technological infrastructure and processes supporting eProcurement. The overall increase in the value of tenders, despite some fluctuations, suggests that eProcurement is handling increasingly significant economic transactions. This has important implications for the broader economy and the government’s ability to manage large-scale projects and purchases efficiently. The continued growth in all metrics during the 2020-21 period, which coincided with the COVID-19 pandemic, demonstrates the resilience and importance of digital procurement systems, especially during times of crisis.

In conclusion, India’s eProcurement system has shown remarkable growth and resilience over the past decade. The exponential increase in tenders processed and bids received, coupled with the substantial growth in tender values, indicates a successful transition to digital procurement methods. This shift likely contributes to increased efficiency, transparency, and competition in government procurement processes. As the system continues to evolve, it has the potential to transform public procurement in India further, driving economic efficiency and fostering a more competitive and diverse supplier ecosystem.