GeM changed the picture of government procurement, business reached Rs 400 crore to Rs 5 lakh crore in 10 years: CEO Mihir Kumar

GeM changed the picture of government procurement, business reached Rs 400 crore to Rs 5 lakh crore in 10 years: CEO Mihir Kumar

New Delhi, June 9 (IANS). Government e-Marketplace (GeM) has brought about a paradigm shift in the government procurement system over the last decade and has provided unprecedented opportunities to small traders, women entrepreneurs and startups. GeM Chief Executive Officer (CEO) Mihir Kumar said that this platform is completely digital, where the entire process from seller registration to order delivery and payment is online.

While talking to news agency IANS, GeM CEO Mihir Kumar said that when GeM was started, its turnover in the first year was only around Rs 400 to 422 crore, but today it has increased to more than Rs 5 lakh crore. This achievement shows that digital platforms have made the government procurement system more transparent, faster and inclusive.

Mihir Kumar further said that as per the government policy, at least 25 percent of government procurement should be done from micro and small enterprises (MSEs), whereas on GeM portal this figure has reached around 45 percent. This has given an opportunity to small businessmen to directly connect with the government market and increase the sales of their products.

He said that the success of GeM is not limited only to increasing business, but it has also financially empowered millions of entrepreneurs. Due to increased competition on platforms, buyers are getting better prices and more choices, which is also benefiting government institutions.

There has also been a significant increase in the participation of women entrepreneurs and startups on GeM. Mihir Kumar said that in the initial phase the business done through startups was only around Rs 2 crore, which has now increased to more than Rs 50,000 crore.

Similarly, the turnover of women entrepreneurs has also increased from Rs 70 crore to more than Rs 80,000 crore. It is clear from this that GeM has emerged as a big platform of economic opportunities for women and new entrepreneurs.

The CEO of GeM said that the government e-marketplace was started in the year 2016 and now it is completing its journey of 10 years. He said that GeM has set a new example at the global level in the field of public procurement.

He said that except South Korea’s KONEPS portal, there are very few examples in the world where government procurement has been developed as a digital marketplace. This initiative of the Government of India has become an inspiring model promoting transparency, efficiency and competition.

Meanwhile, an official statement issued by the Ministry of Commerce and Industry on Tuesday said that the Government e-Marketplace (GeM) has played a big role in promoting inclusive growth in the country. The number of micro and small enterprises (MSEs) registered on the GeM platform has increased from only 2,396 in 2016-17 to over 11.9 lakh now.

The value of government procurement from MSEs has also increased from Rs 69 crore to more than Rs 8.69 lakh crore. During the same period, the number of orders has increased from 2,994 to more than 2.17 crore.

This platform has also provided opportunities for participation in the government procurement process to groups who were previously relatively under-represented. The number of women-owned MSEs on GeM was 268 in 2016-17, which has now increased to over 2.16 lakh. The value of purchases made from these has increased from Rs 8 crore to more than Rs 93,327 crore.

Apart from this, participation of startups has also increased rapidly. While only 88 startups were associated with GeM in 2016-17, now their number has crossed 40,000. The purchases made from them have increased from Rs 2 crore to more than Rs 61,400 crore.

Similarly, the number of registered MSEs belonging to the Scheduled Caste (SC) and Scheduled Tribe (ST) category has increased from 38 to more than 66,000. The value of purchases made from them has exceeded Rs 21,800 crore. According to the Ministry, this shows that participation of various sections in the government procurement process through GeM has continuously increased.

Apart from government procurement, GeM has also contributed significantly to the delivery of public services, especially in the health sector. More than 324 crore vaccine doses and 199 crore syringes have been purchased through this platform. Apart from this, procurement of medical kits, diagnostic equipment and many other products and services related to health services for Vande Bharat trains has also been done through this platform.

Technology has also played an important role in the development of GeM. The platform is using Artificial Intelligence (AI) based tools, advanced analytics, digital monitoring systems and transparent auction processes, making the procurement process more efficient, accountable and user-friendly.

The ministry said that moving towards the goal of ‘Developed India’, GeM is working on further strengthening the digital procurement system. For this, innovation, better user experience and global best practices are being adopted. This platform is serving as an important digital marketplace for government institutions, businessmen and entrepreneurs.

GeM, launched as a major administrative reform of the government, has transformed the public procurement system from a traditional and fragmented system to a digital and data-based system. Reduced human intervention, increased transparency and easier access to government procurement opportunities have led to increased participation from various enterprises and sectors across the country.

GeM has also strengthened the ease of doing business. Through online registration, transparent bidding process, digital contract management and a completely online procurement system, it has increased opportunities for all businesses, big and small, to participate in the government supply chain.

–IANS

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