Government E-Marketplaces catching up with Amazon, Flipkart: Economic Survey 2023
Micro, small, and medium enterprises have played a pivotal role in enhancing orders through GeM, with 57% of the total business coming through MSMEs.
Government E-Marketplaces (GeM), an initiative to boost ecommerce in India, logged orders worth Rs 1 lakh crore in fiscal year 2021-2022, and is on track to catch up with ecommerce companies and .
The value of all orders taken in FY22 grew 160% from the year before, according to the Economic Survey 2023. Micro, small, and medium enterprises have played a pivotal role in enhancing orders through GeM, with 57% of the total business coming through MSMEs.
“The government will focus on formalising the MSME sector to boost economic growth in the coming year,” Chief Economic Advisor V. Anantha Nageswaran said in a press briefing, signaling a direct impact on the growth of the ecommerce industry.
Launched in 2017, GeM facilitates online procurement of goods and services for various organisations and government departments through e-bidding, reverse e-auction, demand aggregation and other tools.
The survey noted that the GeM took a host of steps in FY22 to onboard products of Self-Help Groups (SHGs), tribal communities, artisans, weavers, and MSMEs. Female entrepreneurs across industries and regions contributed to 6% of the GeM’s total business.
B2B ecommerce to fuel online marketplace wave in next 5 years: Report
The Open Network for Digital Commerce (ONDC), which was launched in several cities in beta mode last year, will remain crucial in democratising digital payments, enabling interoperability, and bringing down transaction costs, according to the survey.
The growth of ONDC along with other digital public goods like Unified Payments Interface (UPI) and e-RUPI, will set the path for a stronger digital economy, the survey stated.
“With other initiatives like Co-WIN, e-RUPI, TReDS, Account Aggregators, ONDC, etc. at different stages of implementation, India has developed a unique and cogent digital story to tell. The journey is ongoing and there is much untapped potential in India's digital public infrastructure space,” the survey said.
The ONDC and the Account Aggregator framework are expected to open up avenues for ecommerce market access and credit availability for smaller businesses, besides strengthening economic growth in the medium term.
The Economic Survey, a crucial document released by the Finance Ministry before the Union Budget, summarises economic developments of the previous year and sets the growth path for the upcoming year.
Edited by Akanksha Sarma