The Government e-Market (GeM) portal in India is set to witness a significant surge in procurement, with expectations of crossing Rs 2 lakh crore during the current fiscal year. The increase in buying activities by various ministries and departments has propelled GeM’s growth, surpassing Rs 1.5 lakh crore in procurement by February 1. GeM CEO, P K Singh, expressed confidence in achieving the Rs 2 lakh crore milestone and emphasized the immense potential for further growth through increased participation from states and public sector undertakings.
Rapid Growth and Potential for Expansion:
Launched on August 9, 2016, GeM has emerged as a leading platform for online purchases of goods and services by central government ministries and departments. With over 66,000 government buyer organizations and more than 58 lakh sellers and service providers, the portal offers a diverse range of products and services. Singh highlighted the substantial opportunities for states and public sector undertakings to leverage the platform for their procurement needs.
GeM’s Impact on Efficiency and Transparency:
The adoption of automation and digitization within GeM has resulted in notable process efficiencies, improved information sharing, enhanced transparency, reduced cycle times, and fostered a higher level of trust among bidders. These advancements have ultimately led to increased competition and greater cost savings for buyers. Singh stressed the importance of onboarding states onto the platform, with central public sector enterprises currently accounting for around 50 percent of total procurement on GeM.
A Wide Range of Products and Services:
GeM offers an extensive array of products, ranging from office stationery to vehicles, catering to diverse procurement requirements. While the portal stands at the third position globally, behind South Korea’s KONEPS and Singapore’s GeBIZ, Singh expressed confidence in GeM’s rapid growth trajectory, aiming to surpass GeBIZ this year.
Major Ministries and CPSEs Leveraging GeM:
The top five central government ministries actively utilizing the GeM portal for procurement include the power ministry, the defence ministry, the oil ministry, the steel ministry, and the health ministry. These ministries have collectively made significant purchases, with the power ministry leading the way with Rs 25,544 crore procurement as of February 5. Among the central public sector enterprises (CPSEs), notable players such as NTPC, SAIL, Indian Oil, BHEL, and ONGC have leveraged GeM for their procurement needs.
Leading States in GeM Procurement:
Uttar Pradesh has emerged as the top procurer from the GeM portal, followed by Gujarat, Maharashtra, Madhya Pradesh, Jammu and Kashmir, Delhi, Bihar, Odisha, Chandigarh, and West Bengal. The increased adoption of GeM by these states highlights the growing recognition and benefits associated with the platform.
Conclusion:
The Government e-Market (GeM) portal has witnessed remarkable growth in procurement, with expectations of crossing Rs 2 lakh crore during the current fiscal year. GeM’s success can be attributed to its ability to streamline processes, foster transparency, and promote healthy competition. The platform’s impact extends to various ministries, CPSEs, and states, enabling them to make efficient and cost-effective procurement decisions. As GeM continues to expand, it presents significant opportunities for states and public sector undertakings to leverage its benefits and contribute to the platform’s growth and development in the future.
