GeM Achieves ₹2 Lakh Crore GMV in FY 2023-24

In a remarkable achievement, Government e-Marketplace (GeM) has reached a significant milestone by surpassing ₹2 Lakh Crore in Gross Merchandise Value (GMV) within less than eight months of the current fiscal year, surpassing the total GMV inscribed at the end of last fiscal year (2022-23).  The average GMV per day has also witnessed significant growth and reached more than  ₹850 crore per day in the current Financial Year.

Within the constellation of noteworthy contributors to this momentous GMV achievement in the current financial year, the substantial role played by Central entities, including Central Public Sector Enterprises (CPSEs), has been truly outstanding, constituting an overwhelming 83% of the total.

Also, the enthusiastic participation of State Governments, comprising the remaining 17%, further underscores the nationwide embrace of GeM's transformative impact on public procurement. States like Uttar Pradesh, Gujarat, Maharashtra, Delhi, Madhya Pradesh, Jammu & Kashmir, Odisha, Bihar, Assam, Uttarakhand have placed significant amounts of procurement orders in the current financial year.

This unparalleled collaboration between the Central and State entities exemplifies a harmonious synergy, propelling GeM to unprecedented heights of success.

GeM's expansion into the services sector has played a pivotal role in driving its accelerated adoption. The increase in order value in the services segment has been the brightest chapter in GeM’s success story with exponential growth over the last 3 years. Services sector has exhibited a staggering increase in the overall contribution to the total order value transacted through the platform, having jumped from 23% in FY 21-22 to nearly 46% in the current financial year.

This outstanding accomplishment not only reflects the platform's rapid growth but also its pivotal role in transforming public procurement across India. GeM's unprecedented growth can be attributed to its commitment to fostering efficiency and transparency in public procurement processes, enabling government agencies to access a wide range of products and services in a streamlined and cost-effective manner.

The portal displays a diverse catalogue of nearly 312 service categories and more than 11,800 product categories, well-equipping it to adequately match the dynamic requirements of government buyers at all levels. Cumulatively, GeM has surpassed the ₹5.93 lakh crore GMV since inception, with the overwhelming support of its stakeholders. The total number of transactions on GeM has also crossed 1.8 crore.

Additionally, GeM's unwavering dedication to inclusivity and accessibility stands as a testament to its visionary approach. The platform's seamless integration with e-Gram Swaraj, aimed at streamlining Panchayat-level procurement, not only underscores its commitment but also showcases its unparalleled prowess in connecting with last-mile sellers while meticulously optimizing costs at the grassroots level of administration. This remarkable endeavour elevates GeM's impact, demonstrating its far-reaching influence on India's procurement landscape.

GeM’s multifaceted approach to instilling inclusivity and diversity within the marketplace has also added to its triumphant success. The platform caters particularly to the unique contexts and limitations of marginalised seller segments like small and medium enterprises, women entrepreneurs, startups, and artisans. Its policies have been formulated with the intent to provide right business opportunities to all firms, irrespective of their size and popularity. Subsequently, nearly 49% of the total order value transacted through the platform has been awarded to MSEs. In just 7 months, more than 45000 MSEs have registered as sellers/service providers registered on GeM.

A hallmark of GeM's success lies in its dedication to cost savings, having enabled the government to save over ₹45,000 crore since 2016. According to the Economic Survey 2021-22, GeM's prices were 9.5% lower than other online platforms for 10 out of 22 commodities. GeM's transformative journey is a testament to transparency, efficiency, and inclusivity driven by cutting-edge technology and innovation.

As GeM continues to evolve, it remains a cornerstone of the Indian government's digital transformation and the "Make in India" initiative, promoting the use of domestically manufactured products and services.