Government e Marketplace (GeM) has attained an annual procurement of INR 1 Lakh crore within FY 2021-22. This represents a 160% growth compared to last FY.

Addressing media on the occasion, Prashant Kumar Singh, CEO, GeM said that since inception the cumulative Gross Merchandize Value (GMV) reached INR 1 Lakh crore over 4 and half years, on 23rd March 2021, whereas the GMV of GeM in the current Financial Year surpassed Rs. 1 lakh crore (Ts. 1 trillion) in less than a year.

This represents a 160% growth compared to last FY. Earlier in the day, the Prime Minister, Shri Narendra Modi had tweeted about this accomplishment.

Singh added that the portal had transformed public procurement in India by driving its three pillars viz. 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%. In a short span of 5 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 (~43% of total GMV) on GeM, showing an approximate growth of 508% as compared to last FY.

He also asserted that States continued to be an important stakeholder with approx. 30% contribution to total GMV.

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 Self-Help Groups (SHGs), tribal communities, craftsmen, weavers, and MSMEs.

57% of the total business on GeM has come through the MSME units and over 6% has been contributed by female entrepreneurs. It may be noted that the number of women sellers and entrepreneurs on GeM has grown 6 times in a year. 

It may be noted that procurement from MSEs is at 57% of the total GMV currently with a growth of 143% compared to last FY.

There is a 15% increase in Buyer onboarding compared to last FY and there is a 187% increase in Seller onboarding compared to last FY. There is also a 44% increase in the number of Services compared to last FY with a 25% contribution in the total GMV (Rs. 25,000 Crore)

GeM is an online platform for public procurement in India which was envisaged by the Hon’ble Prime Minister of India, Narendra Modi ji.

The initiative was launched on August 9, 2016 by Ministry of Commerce and Industry, GoI, with an objective to create an open and transparent procurement platform for government buyers. Created in a record time of 5 months, GeM facilitates online procurement of common use Goods and Services.

According to an independent assessment made by the World Bank, average savings for buyers in Government e Marketplace portal is about 9.75% on 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% lower. 10 out of 22 commodities in the sample were cheaper on the GeM portal as compared to other platforms.