Indian Economy News

More than one crore transactions have been made in public procurement: Government e-Marketplace (GeM)

The online platform for the Ministry of Micro, Small & Medium Enterprises (MSMEs) to sell goods and services to the government directly Government e-Marketplace (GeM) has crossed one crore transactions since its launch in August, 2016.

The marketplace was established by the Ministry of Commerce and Industry to offer a digital platform that is paperless, contactless, and cashless to facilitate transactions by governmental entities. By listing their goods on GeM, where the government can contact the vendor directly and break down regional barriers, it also expands economic potential.

According to data on the GeM portal, the total number of transactions or orders processed on GeM stood at 1.5 crore by 68,620 buyer organizations from over 60 lakh sellers and service providers, of which 8.73 lakh sellers were MSMEs.

The total order value or Gross Merchandise Value (GMV) was US$ 49.95 billion (Rs. 4.10 lakh crore) out of which the MSMEs have contributed 52% so far. The portal had registered 88% growth in FY23 with the GMV reaching an all-time high of US$ 24.36 billion (Rs. 2 lakh crore) from US$ 12.91 billion (Rs. 1.06 lakh crore) in FY22.

The Defence Ministry, which nearly doubled its online procurement from the prior year, was the leading consumer of MSME goods via GeM in FY23. According to data posted previously by GeM, the ministry made purchases worth US$ 3.50 billion (Rs. 28,732.9 crore) in FY23, increasing 90.4% from US$ 1.83 billion (Rs. 15,090.8 crore) in goods and services purchased in FY22.

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