Government e-Marketplace Explodes! Reaches ₹4 Lakh Crore Milestone

  • The Government e-Marketplace (GeM) achieved a staggering ₹4 lakh crore GMV in FY24, doubling the previous year’s record.
  • Service procurement surged by 205%, playing a key role in the overall growth.
  • Increased participation from states and central entities like ministries and CPSEs contributed to 85% of the total GMV.
  • GeM empowers small businesses and marginalized communities by providing a level playing field for government tenders.
  • A collaboration with TCS aims to create a more robust and user-friendly platform for enhanced public procurement.

The Government e-Marketplace (GeM) has witnessed a phenomenal surge, reaching a staggering ₹4 lakh crore Gross Merchandise Value (GMV) in the financial year 2023-24, doubling the previous year’s achievement. This success is attributed to the platform’s efficient, transparent, and user-friendly functionalities.

Service procurement played a crucial role, contributing nearly half of the total GMV and reflecting a 205% increase compared to the previous year. GeM has successfully dismantled established service provider monopolies by providing open market access, empowering small domestic entrepreneurs to participate in government tenders and fostering competition.

Increased engagement from states like Gujarat, Uttar Pradesh, and Delhi has significantly contributed to the GMV growth. These states, along with central entities like ministries and public sector enterprises (CPSEs), have collectively procured nearly 85% of the total value on GeM. The Ministry of Coal, Ministry of Power, and Ministry of Petroleum & Natural Gas, along with their subsidiaries, emerged as the top procuring entities at the central level.

GeM’s expansive network of over 1.5 lakh government buyers and 21 lakh sellers/service providers has been instrumental. The platform actively onboards sellers and buyers at the grassroots level, integrating over 89,421 Panchayats and 760+ Cooperatives into the procurement ecosystem, ensuring optimized public spending and sustainable procurement practices.

Through initiatives like ‘Vocal for Local’, ‘One District, One Product’, and ‘Womaniya’, GeM has provided a level playing field for domestic businesses, particularly those owned by marginalized communities. Nearly 50% of the total GMV is attributed to orders awarded to artisans, weavers, micro and small enterprises (MSEs), startups, women-led businesses, and Scheduled Caste/Scheduled Tribe (SC/ST) communities.

GeM’s partnership with Tata Consultancy Services (TCS) aims to create a more robust and secure technological infrastructure. This collaboration leverages new-age technologies to enhance user experience, improve transparency, and promote greater inclusivity. The revamped platform will offer increased configurability, simplifying onboarding for diverse buyers and sellers.

Offering over 12,070 product categories and 320+ service categories, GeM functions as a one-stop shop for seamless public procurement. This opens up a nationwide platform for sellers and service providers to showcase their offerings and participate in government tenders efficiently and transparently.

From its humble beginnings in 2016 with a GMV of ₹422 crore, GeM has come a long way. Its remarkable achievements in a short span have positioned it as one of the leading public procurement platforms globally. GeM remains committed to revolutionizing the public procurement landscape by fostering efficiency, transparency, and inclusivity.