Indian Economy News

10x growth in procurement from Government e-Marketplace in the last three years: Union Commerce and Industry Minister Mr. Piyush Goyal

Mr. Piyush Goyal, the Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution, and Textiles, emphasised the ''10x'' growth in government e-marketplace (GeM) procurement during the previous three years. During his speech at the 'Kreta-Vikreta Gaurav Samman Samaroh 2023' hosted by GeM in New Delhi on June 26, 2023, he congratulated all the stakeholders of GeM for being a catalyst of change.

He said that the greater usage of GeM by Central and State Departments for the procurement of goods and services has saved taxpayers money and improved the utilisation of that money for public welfare projects. The Minister expressed hope that the total procurement of products and services from the government portal GeM, which had exceeded US$ 24 billion (Rs. 2 lakh crore) in 2022-23, would reach US$ 37 billion (Rs. 3 lakh crore) in FY23.

According to the Minister, the Ministry of Commerce and Industry is constantly looking for ways to improve the system. He added that GeM is creating a new system that will be more contemporary and modern with additional components for ease of operations. He said that the new system will provide data analytics to assist buyers and sellers in making procurement-related decisions. According to Mr. Piyush Goyal, Tata Consultancy Services (TCS), the largest software exporter from India, has been awarded the contract to operate and maintain the GeM government procurement platform.

GeM was established in 2016 by the Ministry of Commerce and Industry, with the aim of bringing about a paradigm shift in the nation's public procurement sector. The platform has made it easier for buyers to procure goods and services from sellers across the nation by enabling transparency, efficiency, and cost-effectiveness in the procurement process.

GeM has recorded an astounding US$ 24 billion (Rs. 2 lakh crore) in gross merchandise value (GMV) as of March 31, 2023. With the resounding backing of its stakeholders, Cumulatively, GeM has surpassed US$ 52 billion (Rs. 4.29 lakh crore) GMV since its inception, with the overwhelming support of its stakeholders. Additionally, 1.54 crore transactions have now been completed on GeM and it serves more than 69,000 government buyer organisations’ varied procurement needs. The portal offers over 280+ service categories in addition to over 11,800 product categories.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.