Govt e-procurement platform GeM records transactions worth Rs3,00,000 cr in 11 months
13 Feb 2024
The integrated digital platform for government procurement, GeM, has recorded transaction of gross merchandise value (GMV) of Rs3 lakh crore, recording a 50 per cent increase over the Rs2 lakh crore total GMV recorded for the whole of the previous fiscal.
Also, the daily average GMV transaction value during this period showed a marked increase from Rs504 crore in FY 22-23 to Rs914 crore as of 12 February 2024.
Government eMarketplace (GeM), conceptualised under the visionary leadership of Prime Minister Narendra Modi with a mission to foster 'Minimum Government, Maximum Governance' through digital platforms, has revolutionised the government procurement process, making it transparent and efficient.
By doing away with the physical tendering process, GeM has made procurement of goods and services by central/state ministries, departments, public sector undertakings, panchayats and cooperatives a simple and faster process - for both the buyer and the seller.
Since its inception in 2016, GeM has interlinked over 20 lakh sellers and service providers across the country with more than 3 lakh government buyers (primary as well as secondary buyers). By digitally integrating all stakeholders in the public procurement process, GeM has eliminated harmful practices like collusion, corruption and bribery in government spending.
The platform currently showcases more than 12,200 product and service categories covering all complex and dynamic requirements of government buyers across the country.
Over the past 3 years, GeM has strategically expanded its services bouquet, leading to a near doubling of services procurement from around Rs66,000 crore in FY23 to Rs1,30,984 crore in FY24 (as of 12 February 2024).
In fact, the share of services sector in GeM's GMV surged by 98 per cent year-on-year, with services procurement expected to exceed Rs1.5 lakh crore by the end of the current fiscal.
GeM is making concerted efforts to reach out to various government bodies to maximise participation in public procurement processes through GeM. While central entities accounted for 82 per cent of the current GMV, states have increased their transactions using the platform with cumulative orders worth Rs49,302 crore in FY 23-24. This is a 56 per cent increase from the corresponding period in the previous fiscal.
States like Uttar Pradesh, Gujarat, Maharashtra, Madhya Pradesh and Delhi have emerged as the top procurers on the platform, in terms of order value, during this period.
GeM has started onboarding panchayati raj institutions and cooperatives as buyers, through integration with e-Gram Swaraj. This has resulted in additional GeM transactions worth Rs265 crore carried out by over 70,000 panchayats and over 660 cooperatives, so far.
The key to GeM's success lies in its outreach to marginalised segments such as artisans, weavers, craftsmen, MSEs, especially women-led and SC/ST MSEs, SHGs, FPOs, and startups. About 50 per cent of the total order value transacted through the platform are from MSEs. GeM has awarded business worth nearly Rs3.27 lakh crore to MSEs, of which, orders worth Rs22,200 crore have gone to women-led MSEs.
Besides, GeM has created 392 new categories under the `One District, One Product’ marketplace, enhancing visibility and recognition to arts and crafts nation-wide.
