Procurement through GeM crosses Rs 1.24 lakh crore in Q1 of FY'25

GeM Portal Expected to Become World’s Largest Public Procurement Platform

New Delhi: The Government e-Marketplace (GeM) portal, launched on August 9, 2016, for online purchases of goods and services by all central government ministries and departments, is poised to become the world's largest public procurement platform by the end of this fiscal year. This follows a remarkable achievement where GeM's procurement figures crossed Rs 1.24 lakh crore in the first quarter of 2024-25.

GeM, which facilitates a wide range of procurement activities, reported a gross merchandise value of Rs 1,24,761 crore by the end of the first quarter. This figure represents an impressive quarter-on-quarter growth of 136 percent compared to the previous year’s Rs 52,670 crore, according to GeM CEO Prashant Kumar Singh.

Currently, South Korea’s KONEPS holds the title of the largest public procurement platform globally, with GeM ranking second, followed by Singapore's GeBIZ. Singh highlighted that at the current growth rate, GeM is set to surpass its competitors and claim the top spot.

During this period, procurement by central ministries, including Central Public Sector Enterprises (CPSEs), surpassed the Rs 1 lakh crore milestone. Notably, ministries of coal, defence, and petroleum and gas emerged as the leading procurers. CPSEs alone accounted for over Rs 91,000 crore of this total, with services procurement exceeding Rs 80,500 crore during the quarter.

In the fiscal year 2023-24, GeM’s procurement volume surpassed Rs 4 lakh crore. To further enhance the platform’s efficiency and outreach, GeM is set to introduce the 'GeM SAHAYAK' program. This initiative aims to create a network of 6,000-7,000 trained and certified Sahayaks, who will assist both potential and existing GeM sellers in navigating the portal and expanding their business opportunities. Buyers will also benefit from these services in terms of bid creation and other value-added functions.

Additionally, GeM has significantly reduced transaction charges for sellers. Under the new revenue policy, sellers/service providers will now be charged only 0.30 percent of the order value (down from 0.45 percent) on orders exceeding Rs 5 lakh, with a cap of Rs 3 lakh compared to the previous Rs 72.50 lakh.

The platform has also introduced 'The Aabhar Collection', a curated selection of over 120 hand-crafted gift items and hampers, including products from the One District One Product (ODOP) and Geographical Indication (GI) categories. Prices range from Rs 500 to Rs 25,000, catering to government buyers for official events and ceremonies.

In a bid to maintain its leadership in public procurement, GeM is preparing to deploy 'GeMAI', a generative AI-based chatbot, in the upcoming quarter. This advanced AI tool is designed to provide nuanced solutions to queries raised by buyers and sellers, leveraging conversational analytics and business intelligence.

With over 1.5 lakh government buyers and more than 62 lakh sellers and service providers, GeM offers a comprehensive range of products and services, including office stationery, automobiles, computers, office furniture, and various services like transportation, logistics, and webcasting. The portal supports transactions for government departments, ministries, public sector units, state governments, and central armed police forces.