GeM Celebrates 8th Incorporation Day

Syllabus: GS2/Governance

Context

• Government e Marketplace (GeM), India’s national public procurement portal, marked its 8th Incorporation Day.

Government e-Marketplace

• GeM is a one stop portal to facilitate online procurement of common use Goods & Services required by various Government Departments / Organizations / PSUs. 
• It was launched in 2016, and is operated by the GeM SPV (Special Purpose Vehicle), a 100% government-owned company under the Ministry of Commerce and Industry.
• Aim: To enhance transparency, efficiency and speed in public procurement. 
• The purchases through GeM by Government users have been authorized and made mandatory by the Ministry of Finance in 2017.

Core Principles of GeM

GeM: Transforming Public Procurement in India

• GeM’s user base has seen a threefold increase in recent years, with over 1.64 lakh primary buyers and 4.2 lakh active sellers now onboard.
  • The platform offers more than 10,000 product categories and over 330 services. 
  • Over 10 lakh Micro and Small Enterprises (MSEs), 1.3 lakh artisans and weavers, 1.84 lakh women entrepreneurs, and 31,000 startups are now part of the GeM ecosystem. 
• Expansion of Role: GeM’s role in advancing national priorities was underscored by key transactions, including ₹5,000 crore worth of equipment for the Akash Missile System and ₹5,085 crore in vaccine procurement.
  • The platform is also enabling complex services such as drone-as-a-service for AIIMS, GIS and insurance for over 1.3 crore lives, and wet leasing of chartered flights and CT scanners.
• Nationwide Adoption: GeM has now been adopted across all 36 States and Union Territories, with Uttar Pradesh leading the way.
  • Eight states—including Maharashtra, Manipur, Gujarat, Himachal Pradesh, Assam, Uttarakhand, and Chhattisgarh—have mandated GeM usage. 

Significance

• Transparent and Efficient Procurement: GeM aims to reduce human intervention in government purchases, ensuring transparency, efficiency, and speed. It minimizes corruption and delays in procurement.
• Cost Savings: Competitive pricing has resulted in lower procurement costs for the government.
• Boost to MSMEs & Startups: Significant amount of the orders on GeM are from MSMEs, promoting small businesses.
• Digital Process: The entire process, from vendor registration to payment, is done online.
• Security and Audit Trails: Built-in mechanisms for data security, digital signatures, and audit trails to ensure accountability.

Challenges

• Limited Awareness and Adoption: Many government officials and potential vendors, especially in rural areas and among MSMEs, are unaware or lack training on how to use the platform effectively.
  • There is a resistance to change from traditional procurement methods.
• Quality Control and Standardization: Ensuring consistent quality of products and services is difficult, especially when a large number of vendors are involved.
  • Lack of standardized specifications for some products and services.
• Delays in Payments: Although the platform supports timely payments, in practice, delays by government departments in processing payments discourage sellers.
• Logistics and Delivery Challenges: Vendors often face logistical difficulties in delivering goods across vast geographies.
• Technical Issues and Platform Stability: Users sometimes face issues such as system crashes, slow interface, or bugs, especially during high-traffic periods.
• Regulatory and Policy Bottlenecks: Inconsistent application of procurement rules across departments leads to inefficiency.

Government Initiatives to Improve GeM

• SWAYATT (Startups, Women & Youth Advantage Through e-Transactions): The portal committed to enhance ease of doing business and establish direct market linkages to annual public procurement for startups, women entrepreneurs, Micro & Small Enterprises (MSEs), Self Help Groups (SHGs) and youth.
• Startup Runway 2.0: It is an opportunity for Startups to showcase their innovative products and services to Government buyers and engage in public procurement.
  • GeM has created a dedicated marketplace category for all Startups to list their products and services, irrespective of their DPIIT-certification.
• Womaniya initiative: To showcase products made by women entrepreneurs and women self-help groups [WSHGs].
• GeM is collaborating with various stakeholders from the Micro, Small and Medium Enterprises [MSME] ecosystem with special focus on entrepreneurs from the Scheduled Caste/ Schedule Tribes [SC/ ST].
• The SARAS Collection: It is a pristine handcrafted collection of handicrafts, handloom textiles, office décor, furnishings, accessories, event souvenirs, personal hygiene and care products from top of the line SHGs in India.

Conclusion

• The platform’s strategic initiatives have significantly contributed to the ease of doing business and enhanced participation in government procurement. 
• As GeM continues to evolve, it remains committed to its vision of creating a sustainable, open, and competitive marketplace, driving India’s progress towards inclusive and transparent public procurement practices.

Source: PIB