Ten years later, looking back and ahead at GeM

Why in the News

The Government e-Marketplace (GeM) completed 10 years, connecting around 1.37 lakh government buyers with 25 lakh sellers/service providers and achieving nearly ₹20 lakh crore cumulative Gross Merchandise Value (GMV).

What is GeM?

• GeM: Government e-Marketplace.
• Launched on 9 August 2016.
• A digital platform for government procurement of goods and services.
• Replaced the Directorate General of Supplies and Disposals (DGS&D).
• Integrates product discovery, bidding, contract award and payment.

How does GeM Improve Procurement?

1. End-to-end digitisation: Covers the complete procurement cycle.
2. Transparency: Creates an auditable digital trail.
3. Reduced discretion: Limits face-to-face interaction and scope for favouritism.
4. Single window: Simplifies registration and standardises procurement.
5. Inclusion: Gives Micro and Small Enterprises (MSEs), start-ups and women-led firms direct access to government buyers.

What Does the Data Show?

• Cumulative GMV: About ₹20 lakh crore.
• Buyers: 1.37 lakh.
• Sellers/service providers: 25 lakh.
• Categories: 10,644 product and 350 service categories.
• MSEs: Around 60% of orders by volume and over 45% of GMV.
• Measured benefit: IIT Delhi study estimated ₹86,571.69 crore in benefits over the last three financial years through price and process efficiencies.

What Problems Does GeM Address?

• Reduces corruption and procurement discretion.
• Improves Ease of Doing Business (EoDB) for suppliers.
• Expands opportunities for MSMEs and start-ups.
• Enables faster procurement.
• Promotes competitive prices and better use of public funds.
• Supports domestic manufacturing and Atmanirbhar Bharat.

What is Public Procurement?

• Public procurement is the process through which government bodies purchase goods, works and services using public funds.
• Core principles: Transparency, Fair competition, Non-discrimination, Value for money, and Accountability

Challenges

1. Quality assurance: Risk of substandard products in a large digital catalogue.
2. MSME payment delays: Delayed payments affect working capital.
3. Bid rigging: Cartelisation can undermine competition.
4. Digital divide: Smaller sellers may lack connectivity or digital skills.
5. Grievance redress: Delays in resolving quality, delivery and payment disputes.
6. Cybersecurity: Concentration of procurement data increases cyber risks.

Back2Basics: GeM

• Full form: Government e-Marketplace.
• Launch: 9 August 2016.
• Nodal Ministry: Ministry of Commerce and Industry.
• Predecessor: DGS&D, Directorate General of Supplies and Disposals.
• Purpose: Transparent and efficient government procurement.
• Users: Government buyers, sellers and service providers.
• Focus: Particularly beneficial for MSMEs, start-ups and women entrepreneurs.

Government Initiatives

• Public Procurement (Preference to Make in India) Order, 2017: Preference for domestically manufactured goods.
• Public Procurement Policy for MSEs, 2012: Procurement preference for Micro and Small Enterprises.
• Vivad se Vishwas for MSMEs: Relief mechanism for eligible MSME contractual disputes.
• TReDS: Trade Receivables Discounting System, helping MSMEs obtain liquidity against receivables.

[2025, GS2, 10 marks] E-governance projects have a built-in bias towards technology and back-end integration than user-centric designs. Examine.”