Govt e-Marketplace surpasses ₹1-lakh cr GMV in 145 days

India's public procurement portal, the Government e-Marketplace (GeM), crossed the ₹1 lakh crore Gross Merchandise Value (GMV) milestone within a span of 145 days during the ongoing financial year.

This achievement underscores GeM's commitment to revolutionising government procurement and signifies a substantial improvement compared to the previous year, where this GMV landmark was reached in 243 days, says the Ministry of Commerce & Industry.

The average GMV per day has also witnessed significant growth from ₹412 crore per day in FY23 to ₹690 crore per day in FY24.

"This notable milestone firmly establishes GeM as one of the largest public procurement portals globally, both in terms of transaction value and the breadth of the buyer-seller network within its unified digital ecosystem," the ministry says.

The Centre set up the Government e-Marketplace (GeM) for procurement of goods and services by various government departments, agencies, and public sector undertakings. It was launched in August 2016 as a part of the government's 'Digital India' initiative to bring transparency, efficiency, and cost-effectiveness to public procurement. GeM aims to simplify the public procurement process, reduce paperwork, and promote the use of digital technology for government procurement.

The General Financial Rules 2017 mandates all ministries and departments to procure goods and services available on GeM from GeM.

Since inception, GeM has crossed ₹4.91 lakh crore in GMV and has facilitated over 1.67 crore orders on the platform.

The contribution of Central Public Sector Enterprises (CPSEs), Central Ministries and State Governments has been 54%, 26% and 20% respectively.

The platform's integration with e-Gram Swaraj to streamline Panchayat-level procurement highlights its commitment to reaching last-mile sellers and optimising costs at the grassroots level of administration, the commerce ministry says.

"Looking ahead, GeM's vision encompasses a wider federal reach, customised processes, and policies that will enhance public savings while upholding the highest quality standards for products and services. Its remarkable performance in achieving the ₹1 lakh crore GMV milestone within an accelerated time frame not only reflects its growth trajectory but also solidifies its position as the key player in transforming government procurement practices in the country," it adds.

In the past financial year, GeM clocked a GMV of ₹2 lakh crore. The most significant order came from NTPC, which placed orders worth ₹20,402 crore for mine development and operations for 25 years.

GeM's focus in FY24 is on expanding its reach by integrating government buyers across all tiers into its e-procurement infrastructure. The portal's extended range of service offerings has contributed significantly to its widespread adoption during this period.

With a vast assortment of over 30 lakh listed products and a portfolio of over 300 service categories, the commerce ministry says GeM is well-equipped to meet the diverse product and service needs of government departments nationwide.