GeM of India Poised to Become World's Largest Public Procurement Platform

Introduction: India's GeM Platform on the Rise India’s Government e-Marketplace (GeM) is set to surpass global records this fiscal year, positioning itself as the world’s largest public procurement platform.

Previously, Korea’s ON-line E-Procurement System (KONEPS) held the title with a turnover of $85 billion, primarily from works contracts. GeM, however, is expected to exceed this with its robust turnover of goods and services.

Record-Breaking Turnover:

P K Singh, CEO of GeM, announced that in the current fiscal year 2024-25, GeM will overtake KONEPS with a turnover surpassing $85 billion.

Last year, GeM achieved a turnover of $50 billion from goods and services alone, not including works contracts.

Impressive Buyer and Seller Network:

The platform boasts over 3.7 lakh buyers and more than 21 lakh sellers, offering nearly 12,000 products and over 320 service categories. While computers and phones are the most transacted items, service contracts lead in value terms.

Enhancing Small Entrepreneur Participation & Boosting Domestic Entrepreneurs:

GeM has empowered small domestic entrepreneurs by enabling them to participate in government tenders from anywhere at any time, effectively breaking the “cartel” of established service providers. This democratization of access is a significant milestone for the platform.

AI Integration and Reduced Transaction Charges:

GeM has integrated artificial intelligence extensively, becoming the first government agency to deploy a generative AI-based chatbot to resolve queries.

To improve the ease of doing business, transaction charges have been slashed:

Orders between Rs 5 lakh and Rs 10 crore will incur a transaction charge of 0.3% of the order value.

Orders above Rs 10 crore will have a flat fee of Rs 3 lakh.

Vendor and Seller Support

Rationalized Vendor Assessment: The vendor assessment process has been streamlined with a reduction in chargeable fees: Fees for manufacturers reduced by up to 69%. Fees for traders reduced by up to 92%. Caution money deposit for new sellers with a turnover up to Rs 1 crore has been reduced from Rs 5,000 to Rs 2,000, a 60% drop.

New Initiatives: GeM recently launched its Aadhaar collection platform, promoting the “vocal for local” initiative. Additionally, a training platform for sahayaks (helpers) is planned to assist small sellers with queries and guide them through the marketplace.

Key Facts and Figures

• Current Fiscal Year Target: Exceed $85 billion turnover.
• Last Fiscal Turnover: $50 billion in goods and services.
• Buyer Network: Over 3.7 lakh buyers.
• Seller Network: Over 21 lakh sellers.
• Product Categories: Nearly 12,000 products.
• Service Categories: Over 320 services.
• Last Year’s GMV: Rs 4 lakh crore.
• Increase in Service Procurement: 205% surge.
• Transaction Charges: 0.3% for orders between Rs 5 lakh and Rs 10 crore; flat Rs 3 lakh for orders above Rs 10 crore.
• Reduced Fees: Up to 69% for manufacturers, 92% for traders.
• Caution Money Deposit: Reduced to Rs 2,000 for new sellers with a turnover up to Rs 1 crore.

By understanding these advancements and strategic improvements, stakeholders can better appreciate GeM's pivotal role in revolutionizing public procurement and supporting small businesses across India.