India’s Government e-Market is world’s 3rd largest e-commerce platform: CEO | Latest News India

New Delhi: India’s ‘Government e-Market’ or GeM portal is the world’s third largest e-commerce platform for public procurement after Korea’s ON-line E-Procurement System (KONEPS) and Singapore’s GeBIZ with a total sales value crossing Rs.4 lakh crore in the current financial year ending on March 31, a senior official said.

“GeM closes this financial year with over Rs.4 lakh crore gross merchandise value (GMV), almost a 100% jump from the GMV at the end of the previous fiscal year, exhibiting its unique ability to promote digital inclusion,” GeM CEO PK Singh said. GMV represents the total value of goods or services sold within a specific period.

Launched in August 2016, the total value of orders placed through GeM in 2018-19 was Rs.17,445 crore, which gradually went up to about Rs.1.07 lakh crore in 2021-22. In the previous financial year (FY23), the value of orders (or GMV) was a little over Rs.2.01 lakh crore.

While both public and private sector companies can sell their products and services through GeM, buyers can only be government entities, including gram panchayats.

Defence procurement is one of the major business activities in the platform. “Assembly of BrahMos missile is being done through GeM as a service contract. In defence, right from supplying eggs up to the missile parts is being done through the portal,” said Singh.

GeM provides a level playing field for domestic businesses, particularly smaller ones, physically distant from popular markets, to grow and thrive. Of the Rs.4 lakh crore GMV orders, nearly 50% have been awarded to marginalised seller segments such as artisans, weavers, craftsmen, micro and small enterprises, women-led units, farmer producer organisations and startups, he said.

The portal has collaborations with over 520,000 Common Services Centres (CSCs) and more than 150,000 India Post offices to link the remotest locations of the country for seamless procurement, Singh said.

“Through supportive handholding at every step to help diverse sellers and service providers grow their business on GeM, the platform has given impetus to hyper-local economies across regions in India, resulting in job creation and greater incomes,” Singh added.

According to Singh, services procurement through GeM is rapidly growing. Procurement of services from the portal was worth Rs.66,000 crore in 2022-23, which jumped to Rs.2.05 lakh crore in the current fiscal year. Goods procurement in FY24 (as of March 28) was valued at Rs.1.95 lakh crore, marginally lower than the services procurement.

“GeM has been exceptionally successful in breaking down the cartel of established and renowned service providers, paving the way for small domestic entrepreneurs to participate in government tenders from anywhere at any time. The vast repository of services on GeM has enabled states to procure innovative solutions that cater to all their dynamic needs,” Singh said.

He said the government wants to develop GeM as a unified procurement portal of the country by including contracts also. Currently, only goods and services are available on the platform. A dedicated page for election-related goods and services, such as catering and webcasting services is also available on the portal.

The portal’s network of over 150,000 government buyers and 2.1 million sellers has helped the e-marketplace to grow rapidly, Singh said. “Through comprehensive onboarding of last-mile buyers and sellers GeM has fostered engagement at the grassroots level, by integrating 89,421 panchayats and over 760 cooperatives within its procurement ecosystem, GeM has facilitated sustainable procurement while ensuring optimisation in public spending at the very last level of administration,” he added.

GeM provides a wide range of goods and services, including office stationery, passenger vehicles, computer furniture, hiring of helicopter services, logistics, waste management, and webcasting.