New Delhi: Government eMarketplace (GeM), the innovative digital platform spearheaded by Prime Minister Shri Narendra Modi, has once again rewritten the record books by achieving a Gross Merchandise Value (GMV) of Rs 3 lakh crore within the first 11 months of the current fiscal year. This monumental feat, breaking its own previous record of Rs 2 lakh crore at the end of the last fiscal year, underscores GeM’s pivotal role in transforming public procurement in India.
GeM, conceptualized in 2016 with a mission to promote ‘Minimum Government, Maximum Governance’ through digital platforms, has become a pioneer in public procurement. The platform provides a transparent and efficient online infrastructure for the procurement of goods and services by Central/State Ministries, Departments, Public Sector Undertakings, Panchayats, and Cooperatives.
As of February 12, 2024, GeM directly connects over 20 lakh sellers and service providers with more than 3 lakh government buyers. This digital integration has eliminated harmful practices like collusion, corruption, and bribery, fostering greater transparency in public finances. The platform showcases more than 12,200+ product and service categories, covering the diverse requirements of government buyers across the country.
A significant increase in the daily average GMV transaction value has been recorded during this period, rising from Rs 504 crore in FY 22-23 to Rs 914 crore as of February 12, 2024.
The services segment on GeM has played a crucial role in its success, with services procurement experiencing remarkable growth from approximately Rs 66,000 crore in FY 22-23 to Rs 1,30,984 crore in FY 23-24 (as of February 12, 2024). The services sector’s contribution to GeM’s GMV has surged by 98%, expected to exceed Rs 1.5 lakh crore by the end of this fiscal year.
Efforts were made to enhance state participation in public procurement through GeM, with states placing orders worth Rs 49,302 crore in FY 23-24, reflecting a 56% increase compared to the previous fiscal year. Top procurers on the platform include states like Uttar Pradesh, Gujarat, Maharashtra, Madhya Pradesh, and Delhi.
A comprehensive onboarding drive to register Panchayati Raj institutions and Cooperatives as buyers has resulted in transactions worth Rs 265 crore carried out by 70,000+ Panchayats and 660+ Cooperatives. GeM’s inclusive approach, fostering diversity and inclusivity, has provided opportunities for marginalized seller segments, including MSEs, women-led and SC/ST MSEs, SHGs, FPOs, and startups. Nearly 50% of the total order value transacted through the platform has been awarded to MSEs.
The creation of 392 new categories under the “One District, One Product” marketplace enhances visibility for India’s arts and crafts, recognizing and promoting the country’s rich cultural heritage.
GeM’s success underscores its vital role in revolutionizing public procurement, driving transparency, efficiency, and inclusivity in India’s public procurement domain. The platform continues to play a pivotal role in supporting the government’s welfare initiatives while maintaining fiscal responsibility.