The Government e-Marketplace (GeM), a pioneering initiative by the Indian government, has seen an unprecedented surge in procurement over the past three years. Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution, and Textiles, Shri Piyush Goyal, recently highlighted the 10x growth in the platform’s procurement activity, marking a major milestone in the public procurement sector.
Key Points of Government e-Marketplace (GeM)
- He lauded the efforts of the awardees, whose contribution has brought about the transformational change in the public procurement landscape of the country.
- The Minister noted that GeM is endeavouring to achieve the vision of a unified, transparent and efficient procurement system through leveraging technology and analytics.
- He said that the saving of taxpayers’ money due to increased use of GeM by Central and State Departments for procurement of goods and services has resulted in its better utilisation for public welfare projects.
- The Minister expressed hope that overall procurement of goods and services from the government portal GeM would cross Rs 3 lakh Crore in FY 2022-23 as it has already crossed Rs 2 lakh crore in 2022-23.
Government e Marketplace (GeM)
- Prime Minister, based on recommendations of the Group of Secretaries, decided to set up a dedicated e market for different goods & services procured by Government Organisations / Departments / PSUs.
- GeM is a one-stop National Public Procurement Portal to facilitate online procurement of common use Goods & Services required by various Central and State Government Departments/Organizations/Public Sector Undertakings (PSUs).
- The procurement of goods and services by Ministries and the Central Public Sector Enterprises (CPSEs) is mandatory for goods and services available on GeM.
- Government e Marketplace (GeM) was created in a record time of five months
- It was launched in 2016 to bring transparency and efficiency in the government buying process.
- Nodal Ministry is Ministry of Commerce and Industry.
- It provides the tools of e-bidding, reverse e-auction and demand aggregation to facilitate the government users, achieve the best value for their money.
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.
Vision Of GeM
To affect an evolution in public procurement promoting a transparent, efficient and inclusive marketplace.
Objective Of GeM
GeM Portal Advantages for Buyers and Sellers
For Buyers:
- Wide Range of Products: Access to a vast catalog of products and services.
- Ease of Use: Search, compare, and purchase goods/services with ease.
- Transparency: Full visibility into the procurement process, ensuring accountability.
- Vendor Ratings: Continuous vendor feedback helps ensure quality.
- User-Friendly Dashboard: A dashboard that simplifies buying and tracking payments.
For Sellers:
- Access to Government Buyers: GeM offers direct access to a broad range of government organizations.
- Bid and Auction Opportunities: Sellers can participate in reverse auctions and submit bids.
- Dynamic Pricing: Sellers can adjust pricing based on market conditions.
- Consistent Procedures: Standardized procurement procedures make selling easier and more predictable.
GeM Features
- Eliminating Human Interface: GeM significantly reduces human intervention in vendor registration, order placement, and payment processing.
- Open Platform: There are no barriers to entry for legitimate suppliers looking to do business with the government.
- Notification System: Buyers and sellers receive timely SMS and email notifications at each stage of the procurement process.
- Cashless Payments: Online, cashless payments are facilitated through integrations with systems like PFMS (Public Financial Management System) and SBMOPS (State Bank Multi Option System).
GeM Performance
- Gross Merchandise Value (GMV): GeM recorded a GMV of ₹2 lakh crore in FY 2022-23, and its cumulative GMV surpassed ₹4.29 lakh crore since its inception.
- Transaction Volume: The platform has facilitated over 1.54 crore transactions across more than 69,000 government buyer organizations.
- Product and Service Range: GeM offers procurement solutions across 11,800+ product categories and 280+ service categories.
- Cost Savings: Studies show that minimum savings on GeM are approximately 10%, which translates to savings of around ₹40,000 crore in public funds.
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Government e-Marketplace (GeM) FAQs
The Government e-Marketplace (GeM) is an online platform for government departments and PSUs to procure goods and services transparently and efficiently. It simplifies the procurement process using tools like e-bidding and reverse e-auctions.
Key features of GeM include e-bidding, reverse e-auctions, vendor registration, cashless payments, and a vast catalog of 11,800+ products and 280+ services. These features ensure transparency and efficiency in procurement
GeM helps save taxpayer money by reducing procurement costs through competitive bidding and reverse e-auctions, leading to 10% savings on average, which translates to around ₹40,000 crore in public savings.
Any legitimate supplier can register on GeM. The platform is open to all bonafide vendors wishing to do business with government departments
GeM ensures transparency through open bidding, vendor ratings, email/SMS notifications, and online payments, all of which are publicly accessible and trackable
