Procurement through centre’s GeM portal crosses Rs 4 trillion mark in FY24

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Last Updated01/04/2024

The procurement of goods and services through the centre’s Government e-Market (GeM) portal has crossed Rs 4 trillion so far this fiscal.
Buying activities by various ministries and departments have picked up pace, a senior government official said.
Launched in 2016, GeM (Government e-Marketplace) is an online platform for government agencies to buy and sell goods and services.
It's mandatory for central and state government departments, PSUs, and affiliated organizations to use GeM for procurement.

Increased Efficiency, Transparency, and Speed: GeM streamlines public procurement by offering various buying options like bidding and direct purchase.
Wider Selection and Price Comparison: Buyers have access to a larger variety of products from numerous suppliers, allowing for price comparison and cost-effectiveness.
Benefits for Sellers: Businesses gain easy access to the national public procurement market and government organizations, with a user-friendly platform for bids and monitoring.

Registration Hurdles: The current registration process can be lengthy and require documents like GSTIN or PAN cards, which informal sector businesses often lack.
Unrealistic Pricing: Low mandated prices set by government departments and a compulsory minimum discount can make fulfilling orders unprofitable for small businesses.
Distance Factor: Bids are often for distant locations, adding logistical costs and reducing profit margins.

Simplified Registration: Streamlining the registration process, similar to the MSME Ministry's Udyam Portal, would make it easier for informal businesses to join GeM.
Dynamic Pricing: A more flexible pricing system based on market rates and past orders could ensure fair compensation for sellers.
Local Matching: Matching government orders with local vendors would reduce shipping costs and support local businesses, aligning with the "Vocal for Local" campaign.

Overall, GeM is a positive step towards a more efficient and transparent public procurement system.
By addressing the challenges faced by informal sector sellers, GeM can further empower small businesses and create a more inclusive marketplace.