Indian Economy News

Government e-Marketplace (GeM) witnesses remarkable growth in Service Procurement

Over the last few years, the Government e-Marketplace (GeM) has reached key milestones in the procurement of services. GeM, India's online government procurement platform, significantly grew in transaction value, supporting its commitment to streamlining the procurement process and fostering efficiency and transparency in government purchases.

Over the last two to three years, the transaction value has increased from about Rs. 8,505 crore (US$ 1.02 billion) in fiscal year 2020-21 to a remarkable Rs. 65, 957 crore (US$ 7.92 billion) in fiscal year 2022-23.

The services sector has increased its overall contribution to GeM Gross Merchandise Value (GMV), or the total order value transacted through the platform, from 23% in 2021-22 to approximately 47% in the current fiscal year.

GeM has established an ambitious goal of exceeding Rs. 1.50 lakh crore (US$ 10.02 billion) in the current fiscal year. The active participation of leading government purchasers from diverse industries can be accountable for this remarkable performance.

Prominent Central Public Sector Enterprises (CPSEs) have been utilising GeM extensively for their service procurement requirements, including Coal India Limited, NTPC Limited, Oil and Natural Gas Corporation Limited, and Bharat Petroleum Corporation Limited. Furthermore, several states and union territories, including Gujarat, Uttar Pradesh, Delhi, Uttarakhand, and Punjab, have adopted GeM as their go-to platform for service procurement.

GeM offers a diverse range of services across multiple categories such as manpower outsourcing services, vehicle hiring services, handling, transport and other mining services, insurance services, IT services, local chemist empanelment and medical services.

GeM actively promotes the execution of numerous government initiatives, such as the Saksham Anganwadi and Poshan 2.0 Scheme, Jal Jeevan Mission, Swachh Bharat Abhiyaan, and Mission Karmayogi. This is done by developing services that are appropriate for making these initiatives easier to implement.

GeM has facilitated unique service orders such as the hiring of chartered aircrafts, air international logistics service and drone as a service. GeM has also supported many additional unique service offerings under service categories such as leasing of high-value medical equipment, market research/survey, examination service, cyber security services, hiring of AV/VR services for events, etc.

GeM continues to drive high-value service bids in areas such as hiring, operation and management of ATM, energy audit service and GIS survey. There are also several ongoing high-value bids in service categories such as warehousing service, IT services, vessel hiring, handling, transport, and other mining services.

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