Aug 03: In Financial Year 2022-23, the Government e-marketplace (GeM) registered its highest-ever Gross Merchandise Value of ₹ 2,01,113 crore.
Time and again, multiple studies have pointed out the impact created by GeM in terms of procurement savings to government buyers, including those by the World Bank and the National Economic Survey. A World Bank study in 2020 estimated an average of 9.75% cost savings via GeM and noted a significant increase in sellers’ participation.
The Economic Survey 2021-22 included a cost comparison of offer prices for 22 common-use goods listed on GeM versus listings on popular online platforms like Amazon and Flipkart. Prices on GeM were observed to be 9.5% lower in comparison with other online platforms for 10 out of 22 commodities.
|Gross Merchandise Value (GMV) of GeM in ₹ crore in the last 3 completed financial years|
GeM has achieved a cumulative GMV of more than 4.5 lakh crore until 23rd July 2023 (since inception). Hence, considering the savings estimates reported above, GeM has facilitated savings worth more than ₹ 40,000 crore since its inception.
Major Features enabling savings: Higher seller participation, real-time price comparison, bulk discounts, and better price discovery functionalities such as competitive bidding, reverse auction and demand aggregation.
GeM aims to bring transparency, efficiency, and fairness to the Government procurement process. It benefits stakeholders in several ways, allowing them to participate in a fair and equitable manner. GeM encourages fair and equitable participation from all stakeholders in the Government procurement process, fostering a competitive and efficient marketplace. It enhances transparency, promotes inclusivity, and ensures that the best products and services are procured at the most competitive prices for the Government.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.