GeM's Landmark Q1: Rs 1.24 Lakh Crore GMV, New Initiatives, and Growth

The Government e Marketplace (GeM) achieved a Gross Merchandise Value (GMV) of Rs 1.24 lakh crore for Q1 FY24-25, marking a 136% increase over last year. Key advancements include the 'GeM SAHAYAK' program and reduced transaction charges to bolster seller competitiveness.

The Government e Marketplace (GeM) has reported a record Gross Merchandise Value (GMV) of Rs 1.24 lakh crore for the first quarter (April-June) of FY 24-25, as per data disclosed by the Ministry of Commerce and Industry. This marks a significant quarter-on-quarter growth of 136% from last year's GMV of Rs 52,670 crore.

The ministry highlighted that the services segment led the growth, registering a GMV of over Rs 80,500 crore in Q1 of FY 24-25, a 330% increase from the same period in the previous fiscal year. According to GeM CEO Prashant Kumar Singh, central government bodies have significantly boosted their procurement this fiscal year, driving procurement reforms aimed at optimizing resource allocation for national development.

Central Ministries, including various Central Public Sector Enterprises (CPSEs), crossed the Rs 1 lakh crore procurement milestone, with the Ministries of Coal, Defence, and Petroleum & Gas emerging as top procurers. Additionally, the GeM is set to launch the 'GeM SAHAYAK' program, which aims to create a nationwide network of around 7,000 trained and certified trainers to assist GeM vendors in navigating the platform and enhancing business opportunities. Buyers are also expected to benefit from these services.

To improve the Ease of Doing Business on GeM, the portal has reduced transaction charges for sellers. Under the new revenue policy, sellers/service providers will be charged only 0.30% for orders over Rs 5 lakh, down from the previous 0.45%, with a maximum cap of Rs 3 lakh instead of Rs 72.50 lakh. Prashant Kumar Singh noted that this reduction, ranging from 33% to 96%, would make sellers' offerings more competitive.

The ministry also launched 'The Aabhar Collection' in alignment with the 'Vocal for Local' initiative. This collection includes over 120 handcrafted gift items featuring products from the One District One Product (ODOP) and Geographical Indication (GI) categories, priced between Rs 500 and Rs 25,000 for official government events.

Furthermore, GeM entered into MoUs with the Dalit Indian Chamber of Commerce & Industry (DICCI), Assam Startup Nest, and North Eastern Development Finance Corporation Limited (NEDFi). More than 320 training sessions for buyers and sellers were conducted, and newly launched interactive and multilingual training courses saw significant participation, with 1,172 buyers and 3,393 sellers enrolling within four months.

Launched in 2016, the GeM portal aims to create a robust domestic e-procurement ecosystem, transforming the previously fragmented system into a comprehensive, all-encompassing solution utilized extensively by government buyers and supported by a nationwide network of sellers and service providers.

(With inputs from agencies.)