The Government e-Marketplace (GeM), India’s centralized online platform for public procurement, has effectively saved 10% on public procurement costs over the past five years. Despite this, it still taps into just a mere 5% of India’s total annual government expenditure of approximately Rs 20 lakh crore. Notably, around 56% of the order value processed through the GeM portal has been delivered by Micro, Small and Medium Enterprises (MSMEs), consequently bringing seven lakh small firms on board.
Background of GeM: A One-Stop National Public Procurement Portal
With a catalog of more than 30 lakh products, the GeM portal is a convenient solution designed to facilitate the online acquisition of common-use goods and services required by several Central and State Government Departments, Organizations, and Public Sector Undertakings (PSUs). The procurement of goods and services by Ministries and Central Public Sector Enterprises (CPSEs) from the GeM portal is compulsory for goods and services available on the portal. As of today, the portal has recorded transactions worth over Rs. 10 lakh crore.
Launch and Regulatory Body
Launched under the Ministry of Commerce and Industry in 2016, the GeM was created with an aim to bring about transparency and efficiency in the government buying process.
Bamboo Market Window and the Country of Origin Mandatory Rule
Recent updates on the GeM portal include the Bamboo Market Window (The Green Gold Collection) and the implementation of a rule that mandates sellers to specify the Country of Origin while registering all new products on the GeM portal. This move ensures that buyers can make an informed choice to procure products that meet a minimum of 50% local content criteria.
Significance of GeM in Today’s Scenario
The GeM portal promotes quick, efficient, transparent, and cost-effective procurement. It serves as a crucial tool for government organizations in their fight against the Covid-19 pandemic, helping them to quickly procure essential goods and services.
Role of GeM in Promoting Atmanirbhar Bharat and MSMEs
In sync with the Atmanirbhar Bharat policy, GeM has been instrumental in promoting self-reliance and boosting small Indian manufacturers. It facilitates the entry of small local sellers into public procurement, effectively implementing the ‘Make in India’ and MSME Purchase Preference policies.
Challenges Faced by GeM
Despite its success, the platform faces challenges including integration with other portals from Central government departments such as defense procurement portal and Indian Railways e-Procurement System. These multiple portals may limit GeM’s effort to provide the benefits of economies of scale and efficiency. Additionally, achieving compliance from all Central organizations with Rule 149 of the General Financial Rules (GFR) 2017 remains a challenge. This rule mandates that all common-use goods and services available on the GeM portal should necessarily be procured on this platform.
Way Forward for GeM
With ambitions to grow bigger, GeM aims to become a one-stop shop for both buyers and sellers. Its commitment towards building an efficient and reliable marketplace ecosystem is quite apparent. The success of the platform lies in overcoming the challenges that hinder its growth, and if it does so, GeM could indeed prove to be as precious as the shiny mineral crystals its name suggests.
Last Modified: February 13, 2024