New Delhi: The Government e-Marketplace (GeM) has attained an annual procurement of Rs 1 lakh crore within FY 2021-22. This represents a 160 per cent growth as compared to last financial year (FY). According to Prashant Kumar Singh, CEO, GeM, since the inception the cumulative gross merchandize value (GMV) reached Rs 1 lakh crore in over four and a half years on March 23, 2021, whereas the GMV of GeM in the current financial year surpassed Rs 1 lakh crore in less than a year. This represents a 160 per cent.
Singh said that the portal had transformed public procurement in India by driving its three pillars -- inclusion, usability and transparency and efficiency and cost saving. The number of orders has also surpassed 31.5 lakh in the current financial year with a growth at the rate of 22 per cent. In a short span of five years, GeM has become one of the biggest government e-procurement platforms in the world.
Referring to the share of Central Public Sector Enterprises (CPSEs), Singh said that approximately Rs 43,000 crore worth procurement was done by CPSEs on GeM, showing an approximate growth of 508 per cent as compared to last FY. Highlighting the role played by GeM in ushering in inclusion in government procurement, Singh said that GeM has taken a host of steps to onboard products of SHGs, tribal communities, craftsmen, weavers, and MSMEs.
It may be noted that procurement from MSEs is at 57 per cent of the total GMV currently with a growth of 143 per cent as compared to last FY. There is a 15 per cent increase in buyers on boarding as compared to last FY and there is a 187 per cent increase in sellers on boarding as compared to last FY. There is also a 44 per cent increase in the number of services as compared to last FY with a 25 per cent contribution in the total GMV of Rs 25,000 crore.
According to an independent assessment made by the World Bank, average savings for buyers in GeM portal is about 9.75 per cent of the median price. Since inception GeM has shown impressive growth year on year with better prices, thus helping the state exchequer save substantial money. In an analysis in the Economic Survey 2021-22, cost comparison of various commodities on GeM with those of popular online platforms such as Amazon and Flipkart showed that GeM prices were 9.5 per cent lower.
GeM SAHAY is an initiative to facilitate small sellers to avail credit financing from various integrated lenders for the orders received on GeM portal. The forward auction module has been launched facilitating government Auctioneers to auction assets using multiple auction modes and monitor the complete selling life cycle of their assets. /BI/
