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Impact of GeM on India’s Economy

Last updated on March 3rd, 2025 Posted on March 3, 2025 by NEXT IAS Current Affairs Team  526

Syllabus: GS3/ Economy

Context

  • The Government e-Marketplace (GeM) has revolutionized public procurement in India benefiting government buyers and small businesses alike.

What is GeM?

  • Government e-Marketplace (GeM) is an online platform for public procurement in India. It was launched in 2016 by the Ministry of Commerce and Industry to enhance transparency, efficiency, and speed in government procurement.
  • Objective: To create an open and transparent procurement platform for government buyers.

Core Principles of GeM

Core-Principles-of-GeM

Key Features of GeM

  • SWAYATT is the portal’s commitment to enhance ease of doing business and establish direct market linkages to annual public procurement for startups, women entrepreneurs, Micro & Small Enterprises (MSEs), Self Help Groups (SHGs) and youth.
  • Startup Runway 2.0 is an opportunity for Startups to showcase their innovative products and services to Government buyers and engage in public procurement.
    • GeM has created a dedicated marketplace category for all Startups to list their products and services, irrespective of their DPIIT-certification.
  • Womaniya initiative seeks to showcase products made by women entrepreneurs and women self-help groups [WSHGs].
  • GeM is collaborating with various stakeholders from the Micro, Small and Medium Enterprises [MSME] ecosystem with special focus on entrepreneurs from the Scheduled Caste/ Schedule Tribes [SC/ ST].
  • The SARAS Collection is a pristine handcrafted collection of handicrafts, handloom textiles, office décor, furnishings, accessories, event souvenirs, personal hygiene and care products from top of the line SHGs in India.

Impact of GeM

  • Cost Savings: Competitive pricing has resulted in lower procurement costs for the government.
  • Wider Market Access: Vendors from across the country, including rural areas, can register and sell their products.
  • Boost to MSMEs & Startups: Nearly 50% of the orders on GeM are from MSMEs, promoting small businesses.

Concluding remarks

  • The platform’s strategic initiatives have significantly contributed to the ease of doing business and enhanced participation in government procurement. 
  • As GeM continues to evolve, it remains committed to its vision of creating a sustainable, open, and competitive marketplace, driving India’s progress towards inclusive and transparent public procurement practices.

Source: PIB

 
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