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The Government e-Marketplace (GeM) celebrated its 8th Foundation Day, highlighting its significant digital transformation and the profound impact it has had on public procurement in India. Since its inception, GeM has revolutionised the procurement process, significantly expanding its reach and functionality while driving substantial growth in the sector.
GeM’s achievements were highlighted during the celebration, with a notable increase in procurement activities for FY 2024-25. As of August 8, 2024, GeM has recorded procurement worth ₹1,92,433 crore (US$23.1 billion), representing a 136% growth compared to the same period in the previous fiscal year. This surge in procurement underscores GeM’s crucial role in the digital transformation of public sector procurement.
The platform’s service procurement has also seen impressive growth. Since its launch, GeM has facilitated a Gross Merchandise Value (GMV) of ₹3.91 lakh crore (US$47.5 billion) for services. In the current fiscal year alone, service procurement has reached ₹80,493 crore (US$9.7 billion), reflecting a robust and expanding service sector on the platform. Over the past three fiscal years, GeM has demonstrated a consistent 100% year-on-year growth, fulfilling 62.86 lakh orders valued at approximately ₹4.03 lakh crore (US$49 billion) in FY 2023-24.
With over 1.5 lakh (150,000) government buyers interacting with about 23 lakh (2.3 million) sellers and service providers across 11,523 product categories and 327 service categories, GeM has transformed public procurement by eliminating intermediaries and streamlining processes.
OpenGov Asia reported that GeM has expanded its Learning Management System (LMS) by adding SCORM-compliant interactive e-learning courses in six new languages, bringing the total to 12. This initiative aims to enhance user understanding of GeM’s public procurement processes, with a notable 32-fold increase in user registrations and over 600 Buyer Certificates issued since the LMS launch.
The launch of the GeM SAHAYAK programme is designed to enhance user experience by creating a pool of 6,000-7,000 trained and certified trainers. This initiative aims to assist both sellers and buyers in navigating the platform more effectively, thereby supporting their procurement and sales activities.
GeM has also championed inclusivity by supporting women, tribal, SC/ST MSMEs, startups, artisans, and weavers through its #vocalforlocal GeM Outlet Stores. The portal has seen significant participation from these groups, with 9,56,465 Udyam-verified MSMEs fulfilling orders worth ₹3,87,407 crore (US$47.5 billion), accounting for approximately 39.24% of the cumulative GMV. Women MSMEs alone have fulfilled orders worth ₹37,430 crore (US$4.6 billion), while SC/ST MSMEs have completed orders totalling ₹7,828 crore (US$950 million).
GeM is also leveraging advanced technology to enhance its services. The platform has adopted a generative AI-based Chatbox, becoming the first public procurement agency to do so. This innovation aims to improve product comparison, price discovery, and market intelligence, helping government buyers identify anomalies and potential collusion more effectively.
Since its launch, GeM has seen exponential growth in its Gross Merchandise Value (GMV), which has surged to more than ₹9.82 lakh crore (US$119 billion) as of July 30, 2024. This represents a nearly 1000-fold increase from the ₹422 crore (US$51 million) GMV recorded in FY 2016-17. The portal has also registered over 62 lakh transactions in FY 2023-24, up from just 6,000 in its first fiscal year, demonstrating the platform’s scalability and impact.
The success of GeM is further highlighted by the significant contribution from startups and women-led MSMEs. Since its inception, startups have fulfilled orders worth ₹27,319 crore (US$3.3 billion), while women-led MSMEs have secured orders worth ₹35,138 crore (US$4.3 billion).
The celebration of GeM’s 8th Foundation Day also included the announcement of ongoing and future initiatives, including continued investments in technology and user support to further enhance the platform’s capabilities and reach. GeM’s evolution underscores its pivotal role in transforming public procurement in India and driving economic growth through digital innovation.
