Indian Economy News

Government e-Marketplace has achieved a Gross Merchandise Value (GMV) of US$ 18 billion (Rs. 1.5 lakh crores)

As on February 1, 2023, the Government e-Marketplace (GeM) has achieved US$ 18 billion (Rs. 1.5 lakh crores) worth of Gross Merchandise Value (GMV) in FY23 alone. GeM is expected to exceed its annual target of US$ 21 billion (Rs. 1.75 lakh crores), going with the current run rate.

Cumulatively, GeM has surpassed US$ 37 billion (Rs. 3 lakh crores) of GMV since inception due to the overwhelming support of its stakeholders. Further, the total number of transactions on GeM has also crossed 1.3 crores. GeM has over 66,000 government buyer organisations and more than 58 lakh sellers and service providers offering a diverse range of goods and services. The portal features over 11,000 product categories with more than 29 lakh listed products, as well as over 270 service categories with more than 2.5 lakh service offerings. According to various studies, the minimum savings on the platform are about 10%.

Government e-Marketplace (GeM) is an online platform for public procurement in India that was envisaged by the Prime Minister, Mr. Narendra Modi. The initiative was launched on August 9, 2016 by the Ministry of Commerce and Industry with the objective of creating an inclusive, efficient, and transparent platform for buyers and sellers to carry out procurement activities in a fair and competitive manner. In about last seven years, GeM has revolutionized the ecosystem of public procurement in the country through technology, the digitization of processes, the digital integration of all stakeholders, and the use of analytics. Recently, a focused campaign has been launched by the GeM to boost procurement via States.

The marketplace enables multiple procurement modes and includes policies for automated market adjustments as well as end-to-end digital processes that support a thriving buyer-seller ecosystem. In addition to it, GeM has led to higher process efficiencies, better information sharing, improved transparency, reduced process cycle times, and a higher level of trust among bidders, which in turn have resulted in greater competition and higher savings.

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