The Government-e-Marketplace (GeM) portal is a digital platform approved by the Union Cabinet for sale and procurement of products by cooperatives. It is designed to facilitate online transactions of common use goods and services required by various Central and State Government departments, organisations and public sector undertakings (PSUs).
About GeM Portal
Launched in 2016 by the Ministry of Commerce and Industry, the GeM portal brings transparency and efficiency to the government’s buying process. With over 30 lakh products listed and transactions worth more than Rs. 10 lakh crores, GeM has become a one-stop National Public Procurement Portal. It also provides e-bidding and reverse e-auction tools for government users to achieve value for their money.
Recent Developments on GeM Portal
A recent update mandates sellers to enter the country of origin while registering new products on GeM. This is aimed at meeting the minimum 50% local content criteria, enabling buyers to choose self-reliant products.
Significance of GeM Portal
The GeM platform is vital for transparent, efficient and cost-effective procurement, especially for urgent needs such as during the Covid-19 pandemic. Aligned with the Atmanirbhar Bharat policy, the portal encourages self-reliance and aids small Indian manufacturers. The GeM marketplace furthers ‘Make in India’ and MSME Purchase Preference Policies by allowing entry of small local sellers and providing a common platform for multiple entities.
Challenges Associated with GeM Portal
Despite its significance, the GeM portal faces several challenges, including the existence of multiple portals like the defence procurement portal and the Indian Railways e-Procurement system which limit its nationwide impact. Compliance with Rule 149 of the General Financial Rules (GFR) 2017, mandating procurement of common-use goods and services on GeM for Central organizations, also poses a challenge.
Suggested Way Forward
To tackle these challenges, a single portal for public purchases will eliminate confusion amongst farmers and sync issues. Strict penalties for misgovernance related to agricultural marketing and increased existing ones will ensure compliance. The use of vernacular languages and portability across platforms will enhance the functionality of the portal.
GeM and Cooperatives
The GeM portal provides cooperatives – autonomous associations of individuals who voluntarily unite to satisfy their common economic, social and cultural needs through jointly owned enterprises – with an opportunity to find buyers easily for their products. This setup not only protects them from losses due to rotting of perishable goods but also increases the cost competitiveness of their products. Furthermore, it supports the vision of Doubling Farmers Income by 2022 as proposed by the Ashok Dalwai committee.
