Government e-Marketplace (GeM)is a true gem in public procurement, empowering accessibility, inclusiveness, and transparency. Its inception was a testament to the government's commitment to transparency and efficiency in procurement. The platform, built within an impressive span of five months, aimed to eliminate paper-based processes, enable cashless transactions, and usher in a contactless marketplace.

Table on Contents

1. The Government e-Marketplace (GeM) platform was launched in which year?

2. How GeM is Transforming Public Procurement in India?

3. How is GeM elevating the accountability and visibility of Public Procurement in India?

4. Towards a digital future : GeM is elevating Government Procurement with Technology

The Government e-Marketplace (GeM) platform was launched in which year?

The Government e Marketplace (GeM) platform was launched on 9th August 2016 as an online, end to end solution  with a pioneering mission to revolutionize public procurement. This online platform, developed under the Ministry of Commerce and Industry, swiftly replaced the conventional Directorate General of Supplies and Disposals (DGS&D) to create an open, transparent, and inclusive procurement ecosystem.

GeM provides a complete end-to-end contactless, cashless and paperless procurement system. It covers the entire procurement process right from vendor registration to order fulfillment and payment. 

How GeM is Transforming Public Procurement in India?

GeM stands on three pillars that underpin its transformational impact:

1. Inclusion: GeM is a marketplace for all, providing an equal opportunity for vendors of all scales, from large corporations to small businesses. This inclusion aligns with India's vision of promoting local industries and supporting SMEs.

2. Efficiency and Transparency: The digital nature of GeM streamlines procurement processes, cutting down on paperwork and delays. Detailed product descriptions, specifications, and prices enhance transparency, enabling informed decisions by government buyers.

3. Cost Savings: GeM's structure promotes competition among sellers, leading to competitive pricing. Moreover, the platform's bulk buying and standardized product categories translate into significant cost savings for government entities.

How is the Government e-Marketplace elevating the accountability and visibility of Public Procurement in India?

To underscore the importance of GeM and ensure its effectiveness, the Ministry of Finance amended the General Financial Rules in 2017, making purchases through GeM mandatory for government users with the incorporation of Rule 149. Rule 141-A of GFR 2005, superseded by Rule 149 of GFR 2017. This mandate reinforces the accountability and visibility of public procurement.

Since its launch, GeM has made substantial strides in redefining government procurement:

• Financial Impact: The Gross Merchandise Value (GMV) surpassed INR 4.5 lacs crore till 27.07.2023 reflecting its pivotal role in public sector transactions.
• World Bank Validation: An independent assessment by the World Bank revealed that GeM brings an average savings of about 9.75% on the median price for buyers. Considering total procurement made through GeM, the total savings works out to around Rs 4000 crores to Buyers. This not only demonstrates cost-effectiveness but also validates GeM's impact.
• Visibility and Transparency: GeM has brought transparency and visibility to government procurement, mitigating the potential for corruption and unfair practices. 
• Accessibility: GeM has made the Government procurement easily assessable to all sellers of our country.  

The total registered sellers as on date is 13,18,192. The top 03 states are:

Towards a Digital Future: GeM Elevates Government Procurement with Technology

Its objectives of efficiency, transparency, and inclusiveness are driving India's public procurement into a digital future. The platform's success story is one of transformation, where technology meets governance, fostering economic growth and enhancing the accountability of public spending.

In a landmark step towards efficient, accountable, and accessible procurement, GeM serves as a pioneering example of how digital innovation can revolutionize the public sector and contribute to India's growth story.

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