The procurement of goods and services from the Government e-Marketplace (GeM) crossed ₹3 lakh crore from a Gross Merchandise Value (GMV) of ₹2 lakh crore recorded at the end of the previous fiscal year, as per Ministry of Commerce & Industry.

“There has been a notable increase in the daily average GMV transaction value during this period, rising from ₹504 crore in FY 22-23 to ₹914 crore as of February 12, 2024,” the government states.

The ministry states that GeM, recognised as a trailblazer in public procurement, was conceived under the visionary guidance of Prime Minister Narendra Modi. The mission behind its inception was to promote 'Minimum Government, Maximum Governance' through digital platforms.

The government revealed that the GeM has directly connected over 20 lakh sellers and service providers with more than 3 lakh Government buyers, facilitating a seamless procurement process nationwide. The platform currently shows more than 12,200 products and services categories, catering to the diverse needs of government buyers across the country.

By digitally integrating all stakeholders in the public procurement process, GeM has not only revolutionised the procurement process but has also eliminated harmful practices like collusion and corruption, fostering greater transparency in public finances. Specifically, the services segment has experienced a noticeable surge with procurement reaching ₹1,30,984 crore in FY 23-24 from ₹66,000 crore in FY 22-23.

The current financial year witnessed concerted efforts to enhance participation from various government bodies, resulting in a significant rise in orders placed by States, reflecting a 56% increase compared to the previous year. States like Uttar Pradesh, Gujarat, Maharashtra, Madhya Pradesh, and Delhi have emerged as the top procurers on the platform.

“While central entities have contributed to 82% of the current GMV, increased engagement from States has propelled the platform's growth. States have cumulatively placed orders worth ₹49,302 crore in FY 23-24, reflecting a 56% increase compared to the corresponding period in the previous fiscal year,” it states.

GeM's inclusive approach has been a key driver of its success, catering to marginalised seller segments such as artisans, weavers, craftsmen, MSEs, women-led and SC/ST MSEs, SHGs, FPOs, and startups. “Policies aimed at fostering diversity and inclusivity have ensured a level playing field for domestic businesses, with nearly 50% of the total order value transacted through the platform awarded to MSEs,” the ministry states.Notably, GeM has facilitated approximately ₹3.27 lakh crore of business to MSEs since its inception in 2016, with women-led MSEs alone fulfilling orders worth ₹22,200 crore.

Furthermore, initiatives like the "One District, One Product" marketplace have enhanced visibility for India’s arts and crafts, providing greater recognition on a national scale.

“392 new categories have been created under the "One District, One Product" marketplace, enhancing visibility for listed products and providing India’s arts and crafts greater recognition at a nation-wide stage,” the ministry adds.

Follow us on Facebook, Twitter, YouTube & Instagram to never miss an update from Fortune India. To buy a copy, visit Amazon.