GeM achieves GMV of Rs. 1.5 Lakh Cr

Feb 03: As of February 1st 2023, the Government e-Marketplace (GeM) has achieved a staggering ₹ 1.5 lakh crore of Gross Merchandise Value (GMV) in FY23 alone. Going by the current run rate, GeM is suitably placed to exceed its annual target of ₹ 1.75 lakh crore.

 Cumulatively, GeM has surpassed ₹ 3 lakh crore GMV since inception, with the overwhelming support of its stakeholders. The total number of transactions on GeM has also crossed 1.3 crores. GeM has over 66,000 government buyer organisations and more than 58 lakh sellers and service providers offering a diverse range of goods and services. 

The portal features over 11,000 product categories with more than 29 lakh listed products, as well as over 270 service categories with more than 2.5 lakh service offerings. Based on various studies, the minimum savings on the platform are about 10%, which translates into a savings of over ₹ 30,000 crores worth of public money.

Government e-Marketplace (GeM) is an online platform for public procurement in India that was envisaged by the Prime Minister, Shri Narendra Modi. The initiative was launched on August 9, 2016, by the Ministry of Commerce and Industry with the objective of creating an inclusive, efficient, and transparent platform for buyers and sellers to carry out procurement activities in a fair and competitive manner. 

In the last ~6.5 years, GeM has revolutionized the ecosystem of public procurement in the country through technology, the digitization of processes, the digital integration of all stakeholders, and the use of analytics. GeM is an example of how digital platforms created with a strategic and clear intent to reinvigorate and reimagine legacy processes can bring about lasting change for the nation as well as the underserved. GeM has been effectively contributing to the government’s commitment to “Minimum Government, Maximum Governance”.

The GeM platform enables multiple procurement modes (direct purchase, L1 procurement, bidding, reverse auction, and bid followed by reverse auction). GeM has evolved as a trust-based platform and is contactless, paperless, and cashless, where authentication of users is done through API integration with respective domain databases, i.e., Aadhar, PAN, Aadhar, Start Up, GSTN, MCA21, etc. 

The marketplace includes policies for automated market adjustments as well as end-to-end digital processes that support a thriving buyer-seller ecosystem.

GeM has recently launched a focused campaign to boost procurement via States. Dedicated nodal officers with a comprehensive data-backed roadmap have been identified for select states. The lessons learnt in these states will be replicated across the country. We have already seen a 55% Y-o-Y increase in the GMV in the States, and their GeM Utilization Ratio (GUR) has also shown considerable improvement.

GeM has successfully integrated with 1.5 lakh+ India Post offices and 5.2+ lakh Village Level Entrepreneurs [VLEs] via the CSCs for last-mile outreach and service delivery. Curated training is being conducted with the State Mission Coordinators and District Managers to help them understand GeM and its features.  

Through automation and digitization of processes, GeM has led to higher process efficiencies, better information sharing, improved transparency, reduced process cycle times, and a higher level of trust among bidders, which in turn have resulted in greater competition and higher savings. These innovations in GeM have also brought down waiting times and prices for buyers significantly and ensured timely payments to sellers. This is also expected to enhance the overall “Ease of Doing Business” while also promoting the highest standards of quality in public procurement in India.

Disclaimer: We donot claim that the images used as part of the news published are always owned by us. From time to time, we use images sourced as part of news or any related images or representations. Kindly take a look at our image usage policy on how we select the image that are used as part of the news.