GeM Celebrates its 8th Birthday of Transforming Public Procurement and Empowering India’s SMEs

India’s Government e-Marketplace (GeM) has marked its eighth anniversary, emerging as a cornerstone in the nation’s public procurement landscape. Launched in August 2016 under the Ministry of Commerce and Industry, GeM has revolutionized procurement processes, emphasizing transparency, efficiency, and inclusivity.

A Decade of Digital Procurement Excellence

Over the past eight years, GeM has witnessed exponential growth:

• User Base Expansion: The platform now boasts over 1.64 lakh registered buyers and 4.2 lakh active sellers, offering more than 10,000 product categories and over 330 services.
  

• Transaction Milestones: GeM has facilitated over 2.86 crore orders, amounting to a Gross Merchandise Value (GMV) exceeding ₹13.6 lakh crore.
  

• Cost Efficiency: Independent assessments, including those by the World Bank, indicate an average cost saving of nearly 10% in government procurement through GeM.
  

Empowering Micro and Small Enterprises (MSEs)

GeM has been instrumental in integrating MSEs into the public procurement ecosystem:

• MSE Participation: Over 10 lakh MSEs are now part of the GeM platform, alongside 1.3 lakh artisans and weavers, 1.84 lakh women entrepreneurs, and 31,000 startups.
  

• Fee Reductions: Nearly 97% of transactions on GeM are now free from transaction charges. Additionally, fees have been reduced by 33% to 96% and capped at ₹3 lakh for orders exceeding ₹10 crore, significantly down from the earlier ₹72.5 lakh. For sellers with an annual turnover below ₹1 crore, the caution money deposit has been cut by 60%, with full exemptions granted to select groups.
  

Technological Advancements and Innovations

GeM continues to leverage technology to enhance user experience and operational efficiency:

• AI Integration: The launch of GeMAI, India’s first generative AI-powered chatbot in the public sector, supports voice and text interactions in 10 Indian languages, offering real-time assistance to users.
  

• Advanced Analytics: GeM has deployed advanced analytics for real-time fraud detection, risk mitigation, and continuous monitoring, reinforcing its commitment to transparency and accountability.
  

Nationwide Adoption and Strategic Transactions

GeM’s reach and impact are evident across the country:

• Pan-India Presence: All 36 States and Union Territories have adopted GeM, with eight states, including Uttar Pradesh, Maharashtra, and Gujarat, mandating its use.
  

• High-Value Procurements: The platform has facilitated significant transactions, such as ₹5,000 crore worth of equipment for the Akash Missile System and ₹5,085 crore in vaccine procurement.
  

Looking Ahead

As GeM continues its journey, it remains committed to fostering an inclusive, efficient, and transparent procurement environment. With ongoing technological enhancements and a focus on empowering small and medium enterprises, GeM is poised to further transform India’s public procurement landscape.