Government e-Marketplace (GeM) Achieves ₹4 Lakh Crore GMV, Plans Expansion
The Government e-Marketplace (GeM) has marked a significant milestone by achieving a Gross Merchandise Value (GMV) of ₹4 lakh crore. This achievement underscores the growing preference for digital procurement processes in India. GeM, which was launched in 2016, has emerged as a game-changer in government procurement, providing a transparent, efficient, and cost-effective platform for procurement of goods and services by various government departments and organizations.
Expansion Plans: The success of GeM has spurred plans for expansion. The platform aims to onboard more sellers, especially MSMEs, to enhance participation and promote inclusivity. Additionally, GeM plans to introduce new features and services to further streamline the procurement process and improve user experience.
Benefits of GeM: GeM has revolutionized government procurement by eliminating the need for physical tenders and paperwork, thereby reducing procurement time and costs significantly. Moreover, it promotes transparency, accountability, and fair competition among sellers, ensuring value for money for the government.
Empowering MSMEs:
One of the notable impacts of GeM is its role in empowering Micro, Small, and Medium Enterprises (MSMEs). By providing them with a level playing field and access to government contracts, GeM has facilitated the growth and sustainability of MSMEs, contributing to economic development and job creation.
Digital India Initiative: GeM aligns with the government’s Digital India initiative, which aims to transform India into a digitally empowered society and knowledge economy. By leveraging technology for procurement processes, GeM embodies the vision of a modern, efficient, and transparent governance system.
Global Recognition: The success of GeM has garnered international attention, with other countries expressing interest in adopting similar e-procurement platforms. GeM’s achievements serve as a model for digital procurement reforms worldwide, highlighting India’s leadership in leveraging technology for governance.
Why this News is important
Milestone Achievement: The achievement of ₹4 lakh crore GMV by Government e-Marketplace (GeM) is a significant milestone, indicating the increasing adoption of digital procurement processes in India’s governance systems.
Boost to Digital Transformation: GeM’s success underscores the efficacy of digital platforms in transforming traditional procurement methods, contributing to the government’s broader agenda of digital transformation.
MSME Empowerment: The emphasis on onboarding more MSMEs onto the GeM platform highlights the government’s commitment to empowering small businesses and promoting economic inclusivity.
Historical Context
The inception of Government e-Marketplace (GeM) in 2016 marked a paradigm shift in government procurement practices in India. Prior to GeM, government procurement relied heavily on manual processes, leading to inefficiencies, delays, and opacity in the procurement system.
Key Takeaways from “Government e-Marketplace (GeM) Achieves ₹4 Lakh Crore GMV, Plans Expansion”
| Serial Number | Key Takeaway |
|---|---|
| 1. | GeM has achieved a Gross Merchandise Value (GMV) of ₹4 lakh crore, indicating its growing success. |
| 2. | The platform plans to expand its reach by onboarding more sellers, especially MSMEs. |
| 3. | GeM revolutionizes government procurement by promoting transparency, efficiency, and cost-effectiveness. |
| 4. | It aligns with the Digital India initiative, contributing to the country’s digital transformation. |
| 5. | GeM’s success has garnered international recognition, positioning India as a leader in digital procurement reforms. |
Important FAQs for Students from this News
1. What is GeM?
- GeM stands for Government e-Marketplace, which is an online platform for procurement of goods and services by various government departments and organizations in India.
2. How does GeM benefit government procurement?
- GeM streamlines the procurement process by eliminating paperwork, reducing procurement time, promoting transparency, and ensuring fair competition among sellers, ultimately resulting in cost savings for the government.
3. What is the significance of GeM achieving ₹4 lakh crore GMV?
- GeM achieving a Gross Merchandise Value (GMV) of ₹4 lakh crore signifies the growing preference for digital procurement processes and highlights the platform’s success in transforming government procurement practices.
4. How does GeM contribute to MSME empowerment?
- GeM provides MSMEs with access to government contracts, creating opportunities for small businesses to participate in government procurement, thereby promoting their growth and sustainability.
5. What are the expansion plans for GeM?
- GeM plans to onboard more sellers, especially MSMEs, and introduce new features and services to enhance user experience and further streamline the procurement process.
Some Important Current Affairs Links
