India's national public procurement platform (GeM), commemorated its eighth incorporation day

Government Online Marketplace

GeM serves as a comprehensive portal to enable the online purchasing of commonly used Goods & Services needed by various Government Departments, Organizations, and PSUs.

Launched in 2016, it is managed by the GeM SPV (Special Purpose Vehicle), a company entirely owned by the government and operating under the Ministry of Commerce and Industry.

Objective: To improve clarity, effectiveness, and promptness in public procurement.

The Ministry of Finance authorized and made mandatory the purchases by Government users through GeM in 2017.

GeM: Revolutionizing Public Procurement in India

GeM's user community has experienced a threefold growth in recent years, boasting more than 1.64 lakh primary purchasers and 4.2 lakh active vendors currently registered.

The platform provides over 10,000 categories of products and more than 330 types of services.

More than 10 lakh Micro and Small Enterprises (MSEs), 1.3 lakh artisans and weavers, 1.84 lakh women entrepreneurs, and 31,000 startups are currently included in the GeM ecosystem.

Broadened Responsibilities: GeM's contribution to promoting national goals was highlighted by significant deals, such as ₹5,000 crore in equipment for the Akash Missile System and ₹5,085 crore for vaccine acquisition.

The platform is facilitating intricate services like drone-as-a-service for AIIMS, GIS, and insurance for more than 1.3 crore individuals, alongside wet leasing of chartered flights and CT scanners.

Universal Adoption: GeM is now implemented in all 36 States and Union Territories, with Uttar Pradesh at the forefront.

Eight states—Maharashtra, Manipur, Gujarat, Himachal Pradesh, Assam, Uttarakhand, and Chhattisgarh—have made GeM usage compulsory.

Importance

Clear and Effective Procurement: GeM seeks to minimize human involvement in government acquisitions, promoting transparency, efficiency, and promptness. It reduces corruption and delays in purchasing.

Cost Reduction: Competitive rates have led to decreased acquisition expenses for the government.

Support for MSMEs & Startups: A considerable portion of the orders on GeM comes from MSMEs, encouraging small enterprises.

Digital Procedure: The whole process, from vendor sign-up to payment, takes place online.

Security and Audit Logs: Integrated features for data protection, digital signatures, and audit logs to maintain accountability.

Obstacles

Restricted Understanding and Utilization: Numerous government representatives and prospective vendors, particularly in rural regions and among MSMEs, are uninformed or insufficiently trained on the effective use of the platform.

There is pushback against shifting from conventional procurement practices.

Quality Assurance and Standardization: Maintaining uniform quality in products and services is challenging, particularly when numerous vendors participate.

Absence of uniform standards for certain products and services.

Payment Delays: While the platform aims for prompt payments, in reality, slow processing by government agencies disheartens sellers.

Logistics and Delivery Issues: Suppliers frequently encounter logistical challenges when transporting products over large areas.

Technical Challenges and Platform Reliability: Users occasionally encounter problems like system failures, sluggish interfaces, or glitches, particularly during peak usage times.

Regulatory and Policy Obstacles: Varying enforcement of procurement regulations among departments causes inefficiency.

Importance

Clear and Effective Procurement: GeM seeks to minimize human involvement in government buying, promoting Government Efforts to Enhance GeM.

SWAYATT (Startups, Women & Youth Advantage Through e-Transactions): The platform dedicated to improving business facilitation and creating direct market connections to yearly public procurement for startups, women-owned businesses, Micro & Small Enterprises (MSEs), Self Help Groups (SHGs), and young individuals.

Startup Runway 2.0: This event allows Startups to present their cutting-edge products and services to Government buyers and participate in public procurement.

GeM has established a specific marketplace category for all Startups to showcase their products and services, regardless of their DPIIT certification.

Womaniya initiative: To highlight goods created by women entrepreneurs and women self-help groups [WSHGs].

GeM is working alongside different stakeholders within the Micro, Small and Medium Enterprises [MSME] ecosystem, particularly concentrating on entrepreneurs from the Scheduled Caste/Scheduled Tribes [SC/ST].

The SARAS Collection: This is a flawless, artisanal compilation of handicrafts, handloom fabrics, office decorations, furnishings, accessories, event keepsakes, and personal hygiene and care items sourced from premier SHGs across India.

Conclusion

The platform's strategic efforts have greatly improved the ease of conducting business and increased involvement in government procurement.

As GeM advances, it stays dedicated to its aim of establishing a sustainable, open, and competitive marketplace, propelling India’s movement towards inclusive and transparent public procurement practices.