PIB Summary- 3rd March, 2025 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

The Strategic Impact of GeM on India’s Economy

Context

Public procurement significantly influences economic growth, employment, and innovation.

The Government e-Marketplace (GeM) enhances transparency, efficiency, and inclusivity, benefiting startups, MSMEs, and women entrepreneurs.

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Introduction

• Public procurement is essential for a country’s economic growth and affects citizens’ lives.
• Efficient and transparent government purchases ensure optimal use of public funds and create business opportunities.
• This leads to increased employment, innovation, and overall societal progress.
• In India, the Government e-Marketplace (GeM) has revolutionized public procurement, benefiting government buyers, local entrepreneurs, startups, and small businesses.

GeM’s Impact on Startups and Women Entrepreneurs

• Startups have secured orders worth ₹35,950 crore through GeM.
• Women entrepreneurs form 8% of the seller base, with 1,77,786 Udyam-verified women micro and small enterprises (MSEs) registered.
• These women-led businesses have fulfilled orders worth ₹46,615 crore.

What is GeM?

• GeM is an online platform for public procurement in India.
• It was launched on August 9, 2016, by the Ministry of Commerce and Industry.
• The goal is to create a transparent and open procurement system for government buyers.

Core Principles of GeM

• GeM ensures access to all relevant information about sellers, goods, and services.
• It provides database insights for better decision-making and price assessment.

Fairness

• The platform provides equal opportunities to all sellers, big and small.
• No seller receives preferential treatment, ensuring a competitive market.
• Policies support preferential market access while maintaining fair competition.

Inclusiveness

• All government buyers and sellers can participate in GeM.
• The platform offers training and onboarding assistance to new users.
• Special support is provided to those unfamiliar with GeM operations.

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Key Features of GeM

• This initiative enhances business opportunities for startups, women entrepreneurs, micro and small enterprises, self-help groups, and youth from disadvantaged backgrounds.
• It focuses on training and onboarding last-mile sellers.

Startup Runway 2.0: Showcasing Innovation

• Provides startups an opportunity to present innovative products and services to government buyers.
• A dedicated category exists for startups, regardless of DPIIT certification.
• Supports “Make in India” by encouraging procurement from Indian startups.

Womaniya: Empowering Women Entrepreneurs

• Promotes products made by women entrepreneurs and self-help groups.
• Special categories include handicrafts, home decor, office furnishings, organic foods, and accessories.
• Supports the government’s initiative of reserving 3% procurement for women MSME entrepreneurs.

MSME SC/ST Entrepreneurs on GeM

• GeM collaborates with stakeholders to promote MSME participation, focusing on SC/ST entrepreneurs.
• Government departments and public sector enterprises must procure 25% from MSMEs, including 4% from SC/ST entrepreneurs.

The Saras Collection: Celebrating Handcrafted Excellence

• Features handcrafted items such as textiles, decor, furnishings, accessories, and personal care products.
• Products are sourced from top self-help groups across India.

Conclusion

• GeM has transformed public procurement in India by ensuring transparency, efficiency, and inclusiveness.
• GeM continues to evolve, aiming to create a sustainable, open, and competitive marketplace for public procurement.