Monday, July 22, 2024

Government e-Marketplace Doubles Procurement to Rs 4 Lakh Crore in FY24: A Revolution in Public Procurement Processes


Government e-Marketplace Doubles Its Procurement to Rs 4 Lakh Crore in FY24

In a significant development, the Government e-Marketplace (GeM) has achieved a landmark Gross Merchandise Value (GMV) of Rs 4 lakh crore for the financial year 2023-24. This milestone represents a doubling of the platform’s procurement value compared to the previous financial year, according to the Commerce and Industry Ministry.

The ministry highlighted, “This achievement reflects the portal’s unparalleled digital capabilities which have enhanced efficiency, transparency, and ease in public procurement processes.”

Remarkably, services accounted for nearly 50 per cent of the GMV, witnessing a substantial growth of 205 per cent in this category from the previous year. “GeM has revolutionized the market accessibility, dismantling the monopoly of traditional service providers. This has opened avenues for small domestic entrepreneurs to seamlessly participate in government tenders from any location at any time,” the ministry underscored.

Central government entities, including various ministries and Central public sector enterprises, have been pivotal in achieving this significant growth in GMV, contributing to nearly 85 per cent of the total. Leading the charge at the central level were the Ministry of Coal, Ministry of Power, and Ministry of Petroleum & Natural Gas along with their subsidiaries.

Additionally, robust participation from state governments has equally backed the surging GMV figures. Gujarat, Uttar Pradesh, and Delhi emerged as the top procuring states, significantly exceeding the public procurement goals for the year.

GeM’s extensive network, comprising over 1.5 lakh government buyers and 21 lakh sellers and service providers, has been instrumental in reaching this incredible milestone. Integration of 89421 Panchayats and more than 760 Cooperatives into its procurement ecosystem underlines GeM’s commitment towards sustainable procurement and optimization of public expenditure at grassroots levels.

The platform has been at the forefront of driving inclusivity in procurement through various initiatives such as ‘Vocal for Local’, ‘One District, One Product’, ‘Startup Runway’, and ‘Womaniya’. As a result, nearly half of the 4 lakh crore GMV was awarded to marginalized seller segments including craftsmen, artisans, MSEs led by women and those from SC/ST communities, Self-Help Groups (SHGs), Farmer Producer Organizations (FPOs), and Startups.

In an effort to expand its reach and capacity at the micro-level, GeM has leveraged over 5.2 lakh Common Service Centers (CSCs) and more than 1.5 lakh India Post offices. “This collaboration has been a cornerstone in ensuring widespread access and participation across the country,” stated GeM CEO PK Singh. He further added, “GeM has established itself as a comprehensive platform for seamless public procurement with over 12,070 product and 320+ service categories available for government agencies and departments to utilize.”

This remarkable performance by the Government e-Marketplace not only enhances the efficiency of public procurement but also promotes inclusivity and transparency, setting high standards for digital marketplaces globally.

Alex Sterling
Alex Sterling
Alex Sterling is a seasoned journalist with over a decade of experience covering the dynamic world of business and finance. With a keen eye for detail and a passion for uncovering the stories behind the headlines, Alex has become a respected voice in the industry. Before joining our business blog, Alex reported for major financial news outlets, where they developed a reputation for insightful analysis and compelling storytelling. Alex's work is driven by a commitment to provide readers with the information they need to make informed decisions. Whether it's breaking down complex economic trends or highlighting emerging business opportunities, Alex's writing is accessible, informative, and always engaging.

Read more

Latest News