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How Government e-Marketplace is transforming public procurement?

What the Government e-Marketplace (GeM) and how it has revolutionized public procurement in India? How it promotes "Minimum Government, Maximum Governance"?

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Team TICE
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How Government e-Marketplace is transforming public procurement?

The Government e-Marketplace (GeM) has achieved a Gross Merchandise Value (GMV) of ₹ 1.5 lakh crore in the Financial Year 2023. The platform has been growing steadily since its inception and has surpassed a cumulative GMV of ₹ 3 lakh crore. 

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With more than 66,000 government buyer organizations and over 58 lakh sellers and service providers, GeM has also crossed 1.3 crore transactions.

But do you know what the Government e-Marketplace (GeM) and how it has revolutionized public procurement in India? How has it been contributing to the government's goal of "Minimum Government, Maximum Governance"? What makes GeM a trust-based platform and how has it led to higher process efficiencies, improved information sharing, and reduced waiting times? 

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Read on to know! 

What is the Government e-Marketplace or GeM?

GeM stands for the Government e-Marketplace, which is an online platform for procurement of goods and services by the Indian government. It was established by the Ministry of Commerce and Industry, Government of India to provide a transparent, efficient, and trust-based procurement process for government departments and agencies. The platform offers a wide range of goods and services, and allows for multiple procurement modes including direct purchase, bidding, reverse auction, and others. GeM aims to simplify the procurement process and promote the highest standards of quality in public procurement in India.

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How has GeM revolutionized public procurement in India? 

GeM has transformed the public procurement landscape in India through technology, digitization, and the integration of all stakeholders. The platform offers multiple procurement modes, including direct purchase, L1 procurement, bidding, reverse auction, and bid followed by reverse auction.

The digitization of procurement processes has reduced cycle times, improved information sharing and increased transparency, leading to higher efficiency in the procurement process. 

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GeM offers a contactless, paperless, and cashless platform, with user authentication done through API integration with respective domain databases, which has led to increased transparency and reduced the risk of corruption. With multiple procurement modes available, GeM has increased competition among suppliers, resulting in better prices and higher-quality products for the government. 

The platform's focus on technology and digitization has led to higher levels of trust among bidders, and reduced the time taken for payments, promoting a more trust-based procurement process. GeM provides a single platform for procurement of goods and services, reducing the time and effort required for procurement, and making it easier for government departments to access the products and services they need.

How GeM is boosting procurement through the states?

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GeM has launched a focused campaign aimed at enhancing procurement through the States. Dedicated nodal officers have been assigned to select states, with a comprehensive data-backed roadmap to improve the GeM Utilization Ratio (GUR). States showing a 55% YoY increase in GMV are expected to benefit from these efforts, with the lessons learned from these states being replicated across the country.

Integration with India Post Offices and Village Level Entrepreneurs

GeM has integrated with over 1.5 lakh India Post offices and over 5.2 lakh Village Level Entrepreneurs (VLEs) through the Common Services Centers (CSCs) for last-mile outreach and service delivery. The platform is providing curated training sessions to help State Mission Coordinators and District Managers understand the features of GeM.

The automation and digitization of processes have resulted in higher efficiencies, improved information sharing, and increased transparency. These advancements have led to lower process cycle times, higher levels of trust among bidders, and increased competition. This has resulted in higher savings for buyers and timely payments for sellers. The GeM is expected to promote the highest standards of quality in public procurement in India and enhance the overall "Ease of Doing Business."

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