Government e-Marketplace (GeM) | GeM Portal touches INR 1 Lakh Crore in Procurement

 

Government e-Marketplace (GeM)- Relevance for UPSC Exam

• GS Paper 2: Important Aspects of E-Governance– e-governance- applications, models, successes, limitations, and potential.

 

Government e-Marketplace (GeM) in News

• Government e-Marketplace (GeM) has attained an annual procurement of INR 1 Lakh crore within FY 2021-22. This represents a 160% growth compared to last FY.
• In a short span of 5 years, GeM has become one of the biggest government e-procurement platforms in the world.

 

Performance of GeM

• Since the inception of GeM, the cumulative Gross Merchandise Value (GMV) reached INR 1 Lakh crore over 4 and half years, on 23rd March 2021.
• On the other hand, the GMV of GeM in the current Financial Year surpassed Rs. 1 lakh crore (Ts. 1 trillion) in less than a year, representing a 160% growth compared to last FY.
• The number of orders has also surpassed 31.5 Lakh in the current financial year with growth at the rate of 22%.
• States continued to be an important stakeholder with approx. 30% contribution to total GMV.
• 57% of the total business on GeM has come through the MSME units and over 6% has been contributed by female entrepreneurs.
  • It may be noted that the number of women sellers and entrepreneurs on GeM has grown 6 times in a year.
• There is also a 44% increase in the number of Services compared to last FY with a 25% contribution in the total GMV (Rs. 25,000 Crore).

The Editorial Analysis: A Red Pen Moment for Corporate Governance

What is Government e-Marketplace (GeM)?

• Government e-Marketplace (GeM) is a dynamic, self-sustaining and user-friendly portal for making procurement by Government officers. It is an online platform for public procurement in India.
  • GeM Initiative was launched on August 9, 2016, by the Ministry of Commerce and Industry, GoI.
• Development of GeM Portal: Directorate General of Supplies and Disposal (DGS&D) with technical support of the National eGovernance Division (Ministry of Electronics and Information Technology) has developed a GeM portal for procurement of both Products & Services.
  • Government e-Market (GeM) is hosted by the Directorate General of Supplies and Disposal.

24th National Conference on e-Governance 2021: Hyderabad Declaration Adopted

 

What is the Objective of Government e-Market (GeM)?

• Government e-Marketplace (GeM) aims to create an open and transparent procurement platform for government buyers.
• Government e-Marketplace (GeM) facilitates online procurement of common-use Goods and Services.

 

Government e-Marketplace (GeM) Advantages

For Buyers	For Sellers
Rich listing of products for individual categories of Goods/Services Search, Compare, Select and Buy facility Buying Goods and Services online, as and when required. Transparent and ease of buying A continuous vendor rating system User-friendly dashboard for Buying and monitoring supplies and payments Easy Return policy	Direct access to all Government departments. One-stop shop for marketing with minimal efforts. One-stop shop for bids / reverse auction on products/services. New Product Suggestion facility available to Sellers Dynamic pricing: Price can be changed based on market conditions Seller friendly dashboard for selling and monitoring of supplies and payments Consistent and uniform purchase procedures

 

24th National Conference on e-Governance 2021: Hyderabad Declaration Adopted