Context-

In India, public procurement constitutes a substantial portion, nearly 20-25%, of the GDP. This allocation of taxpayers' money underscores the critical role of efficient public procurement in the functioning of government programs and services. Recognizing the significance of transparent, corruption-free procurement processes aligned with Prime Minister Narendra Modi's vision of inclusive development and ease of doing business, the Government e-Marketplace (GeM) was conceptualized.

Established as a Special Purpose Vehicle under Section 8 of the Companies Act, GeM operates within the purview of the Department of Commerce. Since its inception, GeM has revolutionized public procurement, facilitating savings exceeding INR 60,000 crore. Its remarkable achievements position GeM as a global leader in public procurement platforms, outpacing even established counterparts like South Korea’s KONEPS and Singapore’s GeBIZ within a remarkably short timeframe.

Government e-Marketplace (GeM) Overview:

• Establishment and Purpose: GeM, launched in August 2016, serves as a sophisticated digital platform facilitating end-to-end procurement processes for various Central and State Government departments, organizations, and public sector undertakings (PSUs).
•  Digital Infrastructure: GeM offers a seamless, paperless, cashless, and contactless environment for government buyers to procure goods and services directly from sellers and service providers nationwide through a unified online interface.
• Comprehensive Procurement Coverage: The portal encompasses the entire procurement lifecycle, including vendor registration, item selection, goods receipt, and timely payment facilitation, streamlining operations for all stakeholders.

Challenges in Traditional Procurement:

• Legacy Issues: Traditional government procurement methods were marred by opacity, inefficiency, and susceptibility to corruption and collusion, with buyers often compelled to procure substandard goods at inflated prices from unscrupulous vendors.
• Barriers to Entry: Sellers faced bureaucratic hurdles and delays in empanelment and payment processing, hindering their ability to participate in government tenders and receive fair compensation for their products and services.

Genesis of GeM:

•  Visionary Transformation: GeM emerged from the need to revolutionize India's public procurement landscape, transitioning from archaic manual processes to a technologically advanced, digital-centric platform.
• Digitalization Benefits: GeM's digitalization efforts have enhanced process efficiencies, transparency, and trust among stakeholders, fostering increased competition, cost savings, and improved procurement outcomes
• Inclusive Marketplace: GeM promotes inclusivity by providing equal opportunities to startups, MSMEs, women entrepreneurs, artisans, and craftsmen, fostering a diverse procurement ecosystem and facilitating streamlined participation in government tenders.

Impact and Innovations:

• Enhanced Efficiency: GeM's innovations have reduced waiting times and prices for buyers, while ensuring timely payments for sellers, contributing to improved market dynamics and operational effectiveness.
• Competitive Marketplace: GeM's open and diverse marketplace levels the playing field for various stakeholders, promoting fair competition and enabling easier access to government procurement opportunities.
• Ease of Doing Business: GeM's user-friendly interface and transparent processes contribute to the Ease of Doing Business with the government, aligning with broader national development objectives.

Growth Trajectory of GeM:

• Historic Digital Transformation: GeM represents one of the most extensive digital transformation endeavors globally, involving the realignment of procurement processes across Central and State Government departments and PSUs.
• Remarkable Growth: Despite challenges, GeM has experienced substantial year-on-year growth, evident in the increasing numbers of registered sellers, total procurement, and cumulative order value transacted through the platform.
• Financial Milestones: GeM's Gross Merchandise Value (GMV) surged from approximately INR 420 crore in its inaugural year to INR 2 lakh crore in FY 22-23. The platform aspires to achieve a GMV of 3 lakh crore in the current fiscal year.
•  Expansion into Services: GeM swiftly expanded its portfolio beyond products to encompass a wide array of services. Services witnessed exceptional growth, with a 168% increase in order value from FY 21-22 to FY 22-23, totaling over INR 2 lakh crore in cumulative value since inception.

Features and Functions of GeM:

Category-Driven Marketplace: GeM hosts over 11,600 product categories and 300+ service categories, catering to the procurement needs of government bodies and departments at all levels.

Promotion of Ease of Doing Business:

• Unified Platform: GeM acts as a single platform connecting buyers, sellers, and service providers, streamlining procurement processes.
• Cost Reduction and Efficiency: The platform reduces costs, enhances efficiency, and fosters transparency in public procurement.
• Empowerment of Sellers: GeM empowers sellers from diverse backgrounds, enabling seamless engagement in digital transactions.
• Seamless Registration: GeM's registration process prioritizes ease and minimal data entry, validated through online integration with the Aadhaar database.
• Dynamic Platform: GeM continuously updates its offerings based on stakeholder feedback, ensuring relevance and usability.
•  Diverse Procurement Modes: GeM facilitates procurement through various modes, including auctions and direct purchases, providing flexibility to buyers.
• Contract Management: The platform auto-generates contracts between buyers and sellers based on specified parameters, ensuring speed and efficiency.
• Cashless Payments: GeM supports 100% online payments, offering multiple payment options and enforcing timely transactions.
• Visibility and Trust: GeM provides visibility to MSEs, local sellers, and startups, facilitating informed decision-making through a trust-based rating system.
• Demand Forecasting: GeM displays historical procurement data to assist sellers in planning and ensuring the availability of goods and services at competitive rates.
• Price Reasonability: GeM offers tools for buyers to ascertain price reasonability through price comparisons and historical transaction data.
• Certifications and Training Modules: GeM offers e-procurement certifications and training modules to certify professionals specialized in procurement through the platform.
• Communication and Support: GeM ensures standardized communication with stakeholders, keeping them updated on relevant changes and notices. An escalation matrix with well-defined SLAs ensures users receive expert assistance.
• Responsive Contact Centre: GeM's contact center, available in multiple languages, addresses user queries across various channels. The integrated chatbot, Ask GeMmy, directs user concerns to the appropriate team.
• Dispute Resolution Features: GeM introduces the Vivad se Vishwas-ll functionality for resolving disputes between buyers and sellers.
• AI/ML-Based Decision Support: GeM implements AI/ML-based advanced analytics to reduce anomalies and frauds, providing real-time feedback on transactions and assisting buyers in making informed decisions.
• GeM Sahay: GeM launches GeM Sahay, a mobile app facilitating frictionless financing for MSEs and startups, allowing them to obtain loans at the point of order acceptance on the platform.
• Next-Gen GeM Platform Development: GeM collaborates with Tata Consultancy Services to develop the Next-Gen GeM platform, leveraging cutting-edge technologies for enhanced efficiency and transparency.

Roadmap for the Future:

• Expanding Reach: GeM aims to integrate government buyers across all tiers into its e-procurement infrastructure to maximize its regional footprint.
• Technological Advancements:  The platform partners with a leading IT firm to revamp and build a new modern solution, leveraging AI/ML technologies for fraud detection and improved data analytics.  Augmented and virtual reality will enhance the procurement experience for buyers.
•  Commitment to Sustainability: GeM expands its catalog of 'Green' products and services to support the country's net-zero carbon emissions commitment.
• Enhanced User Experience: GeM prioritizes listing environmentally sustainable products and services while aiming to enhance user experience and transparency in public procurement.
• Achievements and Infrastructure: GeM's buyer-seller ecosystem and operations surpass those of Amazon India and Flipkart combined, capturing data and facilitating end-to-end procurement processes.
•   Transformation with New Technologies: GeM commits to adapting new-age technologies to enhance user experience, improve transparency, and promote inclusivity in public procurement processes.

In conclusion, the Government e-marketplace (GeM) stands as a beacon of transformative change in India's public procurement landscape. With its seamless digital infrastructure, inclusive marketplace, and commitment to transparency and efficiency, GeM has revolutionized procurement processes, saving taxpayers' money and fostering fair competition. Its remarkable growth trajectory, technological innovations, and sustainability initiatives underscore its pivotal role in advancing Prime Minister Narendra Modi's vision of inclusive development and ease of doing business. As GeM continues to evolve and expand its reach, it remains poised to shape the future of public procurement, driving efficiency, transparency, and inclusivity across India.

Source- Indian Express