Government E-Marketplace (GeM): Riding on the strong demand for computers, smart phones, bicycles and passenger motor vehicles from the states, the online marketplace for public procurement GeM aims to achieve the target of Rs 50,000 crore turnover (GMV) in the current fiscal. GeM has seen steady rise in overall sales through its platform since its launch in 2016, touching an all time high figure of over Rs 17,000 crore in the last fiscal.
The total sales taking place through GeM has witnessed a four fold jump in the last fiscal, from Rs 5884 crore to nearly Rs 22,000 crore. However, the actual value of confirmed transactions has been pegged at Rs 17,327 crore as the final placement of orders worth over Rs 4,200 crores has been delayed due to ongoing election process and other reasons.
GeM said the growth has mainly come from the increase in new categories as it has added over 1900 new categories in the last fiscal. Another reason for the huge growth has been attributed to onboarding of big public sector buyers like railways and defence ministries and state governments.
It is also for the first time that the total purchase from the state governments has surpassed the total procurement by the central government through GeM platform.
According to the latest data, procurement by states through GeM platform touched the mark of Rs 9,209 crore in the last fiscal (2018-19) against the total procurement of Rs 7,947 crore by the central government.
In a statement mailed to Financial Express Online, the GeM said wider OEM coverage and portfolios of catalogues were also responsible for high growth in achieving the higher Gross Merchandise Value (GMV) as now more than 8.5 lacs products are available on its platform.
Easy to use modules for procurement on GeM and average savings to the tune of 25% leads to more and more use of GeM which leads to fast growth, said the GeM in its response.
Prime Minister Narendra Modi had launched a dedicated online marketplace for government departments and public sector undertakings in 2016 with the aim to cut the red-tapism and eliminate the corruption in government procurement.
GeM has been developed on the lines of e-commerce players like Amazon, Flipkart and Chinese giant Alibaba with the aim to connect government buyers with original equipment manufacturers and service providers to streamline and standardise the entire process of procurement and hiring of services.