Government portal e-Market eyes purchases worth Rs 1.5 lakh crore in 2022-23
Update: March 24, 2022 8:52 p.m. STI
New Delhi [India]Mar 24 (ANI): Government e-Marketplace (GeM) has reached an annual purchase of Rs 1 Lakh crore in the current financial year and this figure is expected to reach Rs 1.5 lakh crore in 2022-23, Prashant Kumar Singh , CEO, GeM, said Thursday.
Speaking to the media, Singh said the cumulative gross merchandise value (GMV) of GeM has reached Rs 1 Lakh crore over 4.5 years since its inception till March 23, 2021, while GeM’s GMV during of the current financial year exceeded Rs 1 lakh crore in less than a year. This represents a growth of 160% over the previous year.
Earlier today, Prime Minister Narendra Modi tweeted about the achievement.
“Glad to know that Government e Marketplace (GeM) has reached an order value of Rs 1 lakh crore in a single year! This is a significant increase from previous years. MSMEs, with 57% of order value coming from the MSME sector,” the Prime Minister said in a tweet.
GeM is an online platform for public procurement in India. The initiative was launched on August 9, 2016 by the Ministry of Trade and Industry with the aim of creating an open and transparent procurement platform for government buyers.
Singh added that the portal has transformed public procurement in India by driving its three pillars viz. inclusiveness, user-friendliness and transparency and efficiency and cost reduction. The number of orders has also exceeded 31.5 Lakh in the current financial year with growth at the rate of 22%. In the space of 5 years, GeM has become one of the largest online government procurement platforms in the world.
Referring to the share of Central Public Sector Enterprises (CPSEs), Singh said purchases worth around Rs 43,000 crore were made by CPSEs (43% of total GMV) on GeM, showing an approximate growth of 508% compared to the previous financial year. .
He also claimed that states continued to be an important stakeholder with approx. 30% contribution to total GMV.
Highlighting GeM’s role in bringing inclusiveness into government procurement, Singh said that GeM has taken a host of steps to incorporate products from self-help groups (SHGs), tribal communities, artisans, weavers and MSMEs. 57% of total activity on GeM came through MSME units and more than 6% came from women entrepreneurs. It can be noted that the number of women sellers and entrepreneurs on GeM has been multiplied by 6 in one year.
It can be noted that procurement from MSEs currently represents 57% of total GMV, with a growth of 143% compared to the previous financial year. There is a 15% increase in buyer onboarding over last year and a 187% increase in seller onboarding over last year. There is also a 44% increase in the number of services compared to the previous financial year with a 25% contribution to the total GMV (Rs 25,000 crore).
According to an independent assessment by the World Bank, the average savings for buyers on the Government e-Marketplace portal is approximately 9.75% on the median price. Since its inception, GeM has shown impressive year-on-year growth with better prices, helping the public purse save substantial money.
In an analysis of the 2021-22 Economic Study, comparing the costs of various products on GeM with those of popular online platforms such as Amazon and Flipkart showed that GeM prices were 9.5% lower. 10 of the 22 commodities in the sample were cheaper on the GeM portal compared to other platforms. (ANI)