GeM surpasses Rs 3 lakh Cr GMV as online public procurement rises

As of February 12, GeM directly connects over 20 lakh sellers and service providers nationwide, with more than 3 lakh government buyers (primary and secondary).

GeM surpasses Rs 3 lakh Cr GMV as online public procurement rises

Tuesday February 13, 2024,

3 min Read

The Government e-Marketplace (GeM), an online platform for public procurement in India, has surpassed Rs 3 lakh crore in gross merchandise value (GMV) in the current financial year. This marks a significant increase from the Rs 2 lakh crore GMV recorded at the end of FY23.

During this period, there has been a rise in the daily average GMV transaction value, increasing from Rs 504 crore in FY 2022-23 to Rs 914 crore as of February 12, 2024, according to the release. 

Established in 2016 to promote the central government's mission of 'minimum government, maximum governance' through digital platforms, GeM has transformed the landscape of public procurement. It provides a transparent and efficient online infrastructure for the procurement of goods and services by central/state ministries, departments, public sector undertakings, panchayats, and cooperatives.

GeM's infrastructure not only captures data but also facilitates end-to-end activities of public procurement processes for all stakeholders.

As of February 12, GeM directly connects over 20 lakh sellers and service providers nationwide with more than three lakh government buyers (primary and secondary). The platform showcases over 12,200 products and services categories, covering diverse requirements of government buyers across the country.

Over the last three years, GeM has strategically expanded its services, leading to a significant increase in services procurement, reaching Rs 1,30,984 crore in FY 2023-24 (as of February 12, 2024)—up from approximately Rs 66,000 crore in FY 2022-23. The services sector's contribution to GeM's GMV has surged by 98% from the previous year, with services procurement expected to exceed Rs 1.5 lakh crore by the end of this fiscal year.

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In the current financial year, concerted efforts were made to enhance the participation of various government bodies in public procurement through GeM, the statement noted.

While central entities contributed 82% to the current GMV, increased engagement from states has driven the platform's growth. States collectively placed orders worth Rs 49,302 crore in FY 2024, reflecting a 56% increase compared with the corresponding period in the previous fiscal year. States including Uttar Pradesh, Gujarat, Maharashtra, Madhya Pradesh, and Delhi have emerged as the top procurers on the platform in terms of order value.

Since its inception, GeM has facilitated approximately Rs 3.27 lakh crore of business to micro and small enterprises (MSEs), it said in the statement. Among them, orders worth Rs 22,200 crore have been fulfilled by women-led MSEs. Additionally, 392 new categories have been created under the "One District, One Product" marketplace, enhancing visibility for listed products and giving India’s arts and crafts greater recognition.

Edited by Kanishk Singh

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