The Government e-Marketplace (GeM) is a transformative initiative by the Government of India aimed at modernizing and streamlining public procurement. Launched on August 9, 2016, by the Ministry of Commerce and Industry, GeM provides a transparent, efficient, and inclusive online platform for procurement by government entities.
What is GeM?
GeM is the National Public Procurement Portal of India, designed as an end-to-end online marketplace for public procurement. It serves as a centralized platform for government buyers to purchase goods and services from verified sellers. The platform focuses on enhancing transparency, efficiency, and accountability in procurement processes.
Key Features
- Contactless, Paperless, and Cashless: GeM enables transactions to be entirely digital, reducing paperwork and enhancing transaction speed.
- Transparent Bidding Process: Through online bidding and reverse auctions, GeM ensures that government entities procure items at the best possible price.
- 100% Government-Owned: Managed by GeM Special Purpose Vehicle (SPV), a Section 8 (Non-Profit) Company, under the Department of Commerce, Ministry of Commerce and Industry.
Who Can Use GeM?
GeM caters to the procurement needs of:
- Central and State Government Ministries/Departments
- Central and State Public Sector Undertakings (CPSUs and SPSUs)
- Autonomous Institutions and Local Bodies
This ensures that a broad range of government agencies can access a standardized procurement platform for goods and services.
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Utilization of GeM for Procurement
The GeM portal facilitates procurement through different price brackets:
- Up to ₹50,000: Purchases can be made directly from any available supplier on GeM, provided the quality and delivery criteria are met.
- ₹50,000 to ₹30,00,000: Procurement is done through the GeM seller offering the lowest price among a minimum of three manufacturers or sellers. Online bidding and reverse auctions can also be used for price discovery.
- Above ₹30,00,000: Purchases are made after obtaining mandatory bids or through the use of online bidding and reverse auction tools.
Major Developments on GeM
GeM continuously evolves to meet diverse procurement needs. Some recent developments include:
1. GeM Outlet Stores
The platform now hosts outlet stores for various products under notable government and tribal initiatives, such as:
- Saras (Self-Help Group products)
- Ajeevika
- Tribes India
- Khadi India
- Startup Runway
- India Handloom
- India Handicraft
2. GeM-CII MoU
GeM has signed a Memorandum of Understanding (MoU) with the Confederation of Indian Industry (CII) to establish the GeM-CII Centre of Excellence (CoE). This center aims to:
- Provide training.
- Conduct research.
- Offer advocacy support to enhance the efficiency of GeM.
3. Integration with India Post and CSC
The collaboration between GeM, India Post, and Common Service Centers (CSCs) enables:
- Improved logistics services, even in remote areas.
- Seamless delivery for sellers and buyers across the country.
4. Bamboo Market Window
Under the National Bamboo Mission, GeM has created a dedicated portal for marketing bamboo products. This initiative supports sustainable livelihoods and promotes eco-friendly products.
Key Benefits of GeM
For Government Buyers
- Transparency: Eliminates intermediaries and ensures fair pricing through competitive bidding.
- Efficiency: Digital processes reduce administrative delays.
- Wide Selection: Access to a broad range of goods and services from verified sellers.
For Sellers
- Market Access: GeM provides a platform to sell directly to government agencies.
- Ease of Registration: Simple processes for onboarding suppliers.
- Timely Payments: Ensures faster disbursal of funds post-transaction.
For the Economy
- Encourages the participation of MSMEs and startups, fostering entrepreneurship and innovation.
- Promotes Make in India initiatives by supporting indigenous products.
Challenges and Future Outlook
Challenges
- Digital Literacy: Limited awareness and technical knowledge among small-scale vendors.
- Connectivity Issues: Dependence on internet connectivity can pose challenges in remote areas.
- Adoption Resistance: Traditional procurement methods are still preferred by some stakeholders.
Future Goals
- Enhanced Training: Strengthen vendor and buyer training programs to improve platform adoption.
- Global Expansion: Explore partnerships with international procurement platforms.
- AI Integration: Implement artificial intelligence to streamline operations and improve buyer-seller matchmaking.
FAQs About GeM
Who can register on GeM as a seller?
Any individual, MSME, or large-scale enterprise offering goods or services that meet government requirements can register on GeM.Is GeM only for high-value purchases?
No, GeM facilitates purchases across all price ranges, from small-scale procurements to high-value transactions.How does GeM ensure quality?
GeM requires sellers to meet predefined quality standards, and buyers can leave feedback to ensure accountability.Can private organizations purchase from GeM?
No, GeM is exclusively for government entities and public sector undertakings.Is there a fee to register on GeM?
Registration on GeM is free for both buyers and sellers.The Government e-Marketplace (GeM) is a cornerstone of India’s efforts to digitize and streamline public procurement. By fostering transparency, efficiency, and inclusivity, GeM is transforming the way government entities interact with vendors. With its focus on empowering MSMEs and promoting local products, GeM is not just a procurement platform but a driver of economic growth and innovation.
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