Government eMarketplace (GeM): Revolutionizing Public Procurement in India

The Government eMarketplace (GeM), launched in 2016, has rapidly evolved into one of the largest Business-to-government (B2G) procurement portals in the world. It has transformed how the Indian government procures goods and services, significantly enhancing efficiency, transparency, and inclusivity in the process.

• GeM has facilitated the streamlined procurement for all tiers of the Indian government, including central, state, and local bodies.
• It has witnessed a remarkable growth from a modest INR 422 crore GMV in 2016 to a staggering four lakh crore (USD 50 billion) cumulatively in just eight years.
• The platform aims to achieve an even larger GMV of INR 6 to 7 lakh crore in 2024, potentially becoming the largest B2G procurement portal globally.

Empowering MSMEs and Startups

GeM plays a crucial role in empowering Micro, Small, and Medium Enterprises (MSMEs) and startups, providing them with access to large government orders. This democratization of public procurement has created a level playing field, enabling businesses from across the country to participate.

• The platform currently boasts over 90 lakh registered sellers, of which 2.85 lakh are actively transacting, with MSMEs accounting for 39% of the business value.
• GeM has onboarded 27,000 startups, contributing INR 25,000 crore in business, and aims to onboard a majority of the 1.25 lakh DPIIT-registered startups.
• To further support MSMEs, GeM launched the GEM Sahay initiative for collateral-free digital lending, providing loans of up to INR 10 lakh within 10 minutes at interest rates under 10%.

Boosting Efficiency and Transparency

GeM has significantly improved the efficiency of public procurement processes, reducing the procurement cycle from 42 days to just 7 to 10 days. This streamlined process is achieved through various modes of procurement, including:

• Direct purchase: For orders below INR 50,000, government buyers can directly purchase products from sellers who have uploaded their SKUs (stock keeping units).
• L1 (lowest price) procurement: For orders up to INR 10 lakh, buyers can compare products from three OEMs (original equipment manufacturers) and choose the lowest priced option. This process is anonymized, ensuring a fair and unbiased selection.

Digital Infrastructure for Efficiency and Cost Savings

GeM's robust digital infrastructure, including the integration of Aadhaar and PAN, has eliminated redundancies and streamlined the registration process for sellers. This has also led to significant cost savings.

• A World Bank study revealed that GeM has saved the government 10% of the GMV, amounting to nearly one lakh crore Indian rupees.

The Impact of GeM on Indian Government Procurement

The Government eMarketplace has made a significant impact on public procurement in India by:

• Streamlining the process: Reducing procurement timelines and eliminating paperwork.
• Enhancing transparency: Promoting fair and unbiased decision-making.
• Increasing inclusivity: Providing opportunities for MSMEs and startups to participate in government contracts.
• Improving efficiency: Utilizing technology to optimize resource allocation and minimize costs.
• Boosting innovation: Encouraging the development and adoption of new technologies and solutions.

The Future of GeM

GeM continues to expand and evolve, aiming to further enhance its impact on Indian government procurement. The platform's focus on innovation and technology will continue to drive its growth and promote a more efficient, transparent, and inclusive public procurement ecosystem.