GeM Portal: Transforming India's Public Procurement Landscape

GeM Portal is the popular form of the Government E-marketplace. The Government e-Marketplace (GeM) is a revolutionary initiative started by the Indian Government to facilitate online procurement of goods and services by all Central and State government departments, organizations, public sector undertakings (PSUs), and Affiliated bodies.

Efficient public procurement is critical for a country like India as it constitutes 18-20% of India's GDP. A well-functioning system enhances strategic allocation and utilization of government expenditure. In a vast and diverse nation like India, standardizing procurement is challenging due to fragmented processes and policies, requiring significant manual intervention and inefficient systems. The Government e-Marketplace (GeM) initiative was aimed to revolutionize this by leveraging digital power, addressing the need for a transformative shift in procurement processes, and ushering in an era of e-governance.

Charter of GeM Portal

1. Comprehensive end-to-end procurement system:

   GeM ensures contactless, cashless, and paperless transactions from vendor registration to order completion.

2. Transparency and efficiency:

   GeM standardizes processes to ensure transparency, efficiency, timely delivery, and payment.

3. Trust-based system:

   GeM minimizes manual intervention by leveraging technology and existing databases for seamless registration, transactions, and contracting.

4. Decision support tools:

   GeM provides tools for optimal value-for-money, including buyer and seller ratings, price rationalization, and demand forecasting.

5. Robust audit trail and internal controls:

   GeM maintains transparency and accountability with built-in checks and balances.

6. Inclusivity:

   GeM supports local businesses, Micro and Small Enterprises (MSEs), and startups to engage in government transactions.

7. Transparency through scoreboards:

   GeM publishes monthly scoreboards detailing key metrics like GMV, buyers/sellers, order fulfillment, savings, and dispute resolution.

8. Collaboration with stakeholders:

   GeM engages with Ministries, States, and Standing Committees to define procurement plans, technical specifications, and review processes, ensuring accountability and alignment with objectives.

GeM Portal Launch Plan

Given India's substantial public procurement expenditure, constituting 18-20% of the GDP, alongside its diverse geographic and policy landscapes, the GeM Portal was strategically aimed at achieving annual transactions of 1 Lakh Crores within three years and 2 Lakh Crores within five years. Over the long term, spanning 10-12 years, it was envisaged that GeM could potentially capture up to 5% of India’s nominal GDP in terms of transaction value, placing it on par with the world's leading government e-procurement platforms.

Launched on August 9, 2016, in a record time of just five months, the Government e-Marketplace (GeM) serves as a comprehensive online procurement solution, accessible via www.gem.gov.in. Functioning like an e-commerce platform, GeM facilitates seamless transactions between government organizations acting as buyers and various entities wishing to participate in government procurement processes as sellers, offering an array of goods and services.

Success Story of GeM Portal

Since its inception, the Government e-Marketplace (GeM) Portal has experienced remarkable growth, achieving a milestone of 1.06 Lakh Crores in the fiscal year 2021-22, setting a benchmark for the procurement platform. In the subsequent years, this growth trajectory intensified, with the overall order value skyrocketing by 88% to 2.01 Lakh Crores in 2022-23, and doubling to 4.03 Lakh Crores in 2023-24, solidifying its pivotal role in government procurement processes.

The surge in GeM's performance underscores the increasing reliance on the platform for efficient procurement solutions, positioning it as the third largest Public Procurement platform globally, following Korea’s ON-line E-Procurement System (KONEPS) and Singapore’s GeBIZ.

Notably, the GeM Portal has been instrumental in empowering MSMEs, with 49.1% of orders attributed to them, demonstrating a steadfast commitment to inclusivity, and fostering the economic growth of MSMEs.

GeM Statistics (as on 8th May, 2024)

Primary Buyers 149,827, Secondary Buyers 217,638

Seller & Service Providers 85,81,731

Product Categories 11,914

Gross Merchandize Value till date: 860,596 (in INR crore)

Gross Merchandize Value in 2024: 403,707 (in INR crore)

Total Number of Orders in 2024: 6,279,925

New Initiatives by GeM

GeM, the Government e-marketplace, has been diligently expanding its horizons through a series of innovative initiatives aimed at attracting a broader spectrum of buyers and sellers while enhancing the overall user experience across various segments.

1. Sahay Loan Scheme:

   An initiative launched on the GeM platform, tailored to bolster the growth of small and medium-sized enterprises (SMEs) in India. This scheme is engineered to extend financial support to eligible sellers, empowering them to surmount financial hurdles and scale up their business operations, thereby fostering economic expansion.

2. Ask GeMmy:

   A user-friendly AI assistant available round-the-clock, primed to automatically address inquiries from buyers and sellers without the need for manual intervention. Users can simply input keywords pertaining to their query, seamlessly accessing relevant information, and ensuring a frictionless business experience on the platform.

3. GeM Learning Management System:

   Central to GeM's commitment to knowledge dissemination is the GeM Learning Management System (LMS), serving as a comprehensive repository tailored to meet the diverse needs of users. Offering structured learning paths, this platform facilitates registration, live webinar-based training sessions, certification, feedback mechanisms, FAQs, and other user-specific journeys, empowering users to navigate the ecosystem with confidence.

4. Multilingual Ecosystem:

   Acknowledging the significance of linguistic diversity, GeM is proactively streamlining procurement procedures by integrating local languages, thus addressing the diverse linguistic tapestry of the nation. Through the conceptualization of a multilingual ecosystem, GeM endeavors to broaden its reach across federal domains, facilitating sellers and service providers with efficient business transactions.

5. Seller Incentive Schemes:

   The platform's Seller Incentive Schemes encompass a wide array of categories, ranging from MSME Sellers and Women Entrepreneurs to Startups and Non-MSME Sellers. Similar schemes are extended to buyers across different government entities, incentivizing participation and fostering a dynamic marketplace conducive to growth and innovation.

6. Startup Runway:

   Startup Runway serves as a dedicated platform for showcasing innovative products and solutions from India's burgeoning startup ecosystem. By providing these startups with exposure to government buyers, GeM facilitates their growth and fosters collaboration, driving innovation within the public procurement landscape.

7. The Saras Collection:

   represents a unique collaboration between GeM and the Deen Dayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM), Ministry of Rural Development. This initiative aims to showcase daily utility products crafted by rural self-help groups (SHGs), granting them access to Central and State Government buyers. The collection features a curated selection of handcrafted handicrafts, handloom textiles, office decor, personal care items, and more, offering rural groups in India vital market exposure and opportunities for economic empowerment.

In essence, GeM's new initiatives underscore its dedication to innovation, inclusivity, and economic empowerment, marking a significant shift in India's procurement landscape. Through these efforts, GeM is reshaping public procurement practices, fostering growth, and instigating positive transformations nationwide. GeM's objective is to elevate efficiency, transparency, and inclusivity in public procurement by offering tools like e-bidding, Reverse Auction, and Direct Procurement, ensuring optimal value for government users.

Moreover, GeM champions a digital marketplace aligned with the government's 'Digital India' vision, streamlining transactions, and minimizing paperwork. With user-friendly features and stringent quality controls, the GeM Portal plays a crucial role in nurturing a seamless, accountable, and inclusive procurement environment.

Tenders Plus provides sellers with a comprehensive guide, ensuring smooth navigation through the processes of the GeM Portal. By complying with the prerequisites and effectively elucidating the advantages of GeM Portal registration, product listing, catalog management, OEM panel, vendor assessment, Tender information, and bidding processes, sellers lay the groundwork for success in securing tenders and forging enduring partnerships on the GeM portal. Register now on Tendersplus.com and engage with our specialists to facilitate your GeM Registration promptly!