New Delhi: The integrated digital platform has achieved a Gross Merchandise Value of Rs 3 lakh crore, surpassing the total GMV of the previous fiscal year, which was Rs 2 lakh crore. Government eMarketplace, a pioneer in public procurement, has set an impressive milestone.
There has been a significant increase in the daily average GMV transaction value during this period, rising from Rs 504 crore in FY 22-23 to Rs 914 crore as of February 12, 2024.
GeM, conceptualized under the visionary leadership of Prime Minister Narendra Modi, aims to foster ‘Minimum Government, Maximum Governance’ through digital platforms. Since its inception in 2016, GeM has revolutionized public procurement, providing a transparent and efficient online infrastructure for procurement by various entities.
As of February 12, 2024, GeM directly links over 20 lakh sellers and service providers with more than 3 lakh Government buyers. By digitally integrating all stakeholders, GeM has eliminated harmful practices like collusion and corruption in government spending, promoting transparency in public finances. The platform offers more than 12,200 product and service categories to meet the diverse requirements of government buyers.
The services segment on GeM has experienced a surge, contributing significantly to its growth. Over the past 3 years, GeM has strategically expanded its services, resulting in a remarkable increase in services procurement. The services sector’s contribution to GeM’s GMV has surged by 98% from last year, with services procurement expected to exceed Rs 1.5 lakh crore by the end of this fiscal year.
Concerted efforts were made to maximize participation in public procurement processes through GeM. While central entities have contributed to 82% of the current GMV, increased engagement from States has driven the platform’s growth. States have placed orders worth Rs 49,302 crore in FY 23-24, reflecting a 56% increase compared to the previous fiscal year.
GeM initiated a comprehensive onboarding drive last year to register Panchayati Raj institutions and Cooperatives as buyers, fostering engagement at the grassroots level. Transactions worth Rs 265 crore have been carried out by Panchayats and Cooperatives, reflecting their active participation on GeM.
GeM’s inclusive approach caters to marginalized seller segments such as artisans, weavers, and MSEs, fostering diversity and inclusivity. Nearly 50% of the total order value transacted through the platform is awarded to MSEs, with orders worth Rs 22,200 crore fulfilled by women-led MSEs alone.
The portal has aided the government in substantially raising its welfare expenditure while maintaining the nation’s fiscal health. GeM has established an infrastructure that facilitates end-to-end activities of public procurement processes for all stakeholders, driving transparency, efficiency, and inclusivity.