Transactions on GeM portal cross US$ 6.09 billion (Rs. 50,000 crore) in first quarter
- IBEF
- June 28, 2023
The Government e-Marketplace (GeM) platform has crossed US$ 6.09 billion (Rs. 50,000 crore) in gross merchandise value (GMV) so far, this fiscal year, which is 1.5 times more than the same period last year.
On the sidelines of the CII-MSME Growth Summit, GeM Chief Executive Officer Mr. P K Singh said that “Considering the pace of growth so far, the portal in the current financial year is expected to surpass the previous year’s transactions of US$ 24.39 billion (Rs. 2 trillion)”.
In 2021-22, the portal's procurement of goods and services was worth US$ 12.92 billion (Rs. 1.06 trillion).
Union Commerce Minister Mr. Piyush Goyal has expressed optimism that the GeM's total procurement for the years 2022–2023 would surpass US$ 36.58 billion (Rs. 3 trillion).
Central public sector firms accounted for around 53% of the US$ 6.09 billion (Rs. 50,000 crore) in transactions, followed by central ministries (30%) and state governments (17%).
According to Mr. P K Singh, a provision on the portal for penal interest on postponed payments to vendors by government ministries and departments will be functional in July.
In 2020, the government agreed to apply a 1% penalty on government departments and agencies for late payments to vendors selling items on the GeM platform.
Mr. Piyush Goyal stated that data analytics would be used in the new system to assist buyers and sellers in making procurement decisions. "TCS, India's largest software exporter, has won the contract to operate and maintain the government procurement portal GeM."
The GeM portal was developed in 2016 to facilitate the online procurement of products and services by all central government ministries and departments. It includes over 63,000 government purchasing entities and over 6.2 million vendors and service providers offering a wide range of products and services.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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