Yojana Magazine January 2024 - 2 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

 Page 1


22 January 2024
In India, public procurement amounts to nearly 20-25% of GDP . This 
means that a significant amount of taxpayers’ money is directed towards 
making purchases of public goods and services that constitute the 
lifeblood of government programmes and services. Given this context, 
the importance of efficient public procurement cannot be overstated. 
To inculcate the Hon’ble Prime Minister Narendra Modi’s vision of 
inclusive development, corruption-free governance, and ease of doing 
business, Government e-Marketplace (GeM) was conceptualised as a 
Special Purpose Vehicle under Section 8 of the Companies Act, within 
the ambit of the Department of Commerce. Since its inception, GeM has 
enabled more than INR 60,000 crore of public savings. The portal’s vast 
achievements have propelled it to ascend as one of the foremost public 
procurement platforms globally, surpassing even the most advanced 
counterparts such as South Korea’s KONEPS and Singapore’s GeBIZ 
across diverse metrics, all achieved in an astonishingly short period.
Government e-marketplace 
le AdIN g THe dIgITAl W AVe praShant kuMar Singh the author is director and Ceo, GeM, New delhi. email: ceo-gem@gov.in
Page 2


22 January 2024
In India, public procurement amounts to nearly 20-25% of GDP . This 
means that a significant amount of taxpayers’ money is directed towards 
making purchases of public goods and services that constitute the 
lifeblood of government programmes and services. Given this context, 
the importance of efficient public procurement cannot be overstated. 
To inculcate the Hon’ble Prime Minister Narendra Modi’s vision of 
inclusive development, corruption-free governance, and ease of doing 
business, Government e-Marketplace (GeM) was conceptualised as a 
Special Purpose Vehicle under Section 8 of the Companies Act, within 
the ambit of the Department of Commerce. Since its inception, GeM has 
enabled more than INR 60,000 crore of public savings. The portal’s vast 
achievements have propelled it to ascend as one of the foremost public 
procurement platforms globally, surpassing even the most advanced 
counterparts such as South Korea’s KONEPS and Singapore’s GeBIZ 
across diverse metrics, all achieved in an astonishingly short period.
Government e-marketplace 
le AdIN g THe dIgITAl W AVe praShant kuMar Singh the author is director and Ceo, GeM, New delhi. email: ceo-gem@gov.in
23 January 2024
et up in August 2016, government 
e-Marketplace is a world-class, robust 
digital portal that facilitates end-to-end 
procurement of goods and services by 
various c entral and s tate g overnment departments, 
organisations, and allied public sector undertakings 
(Psus). it provides a paperless, cashless, and 
contactless ecosystem for government buyers to 
directly purchase products and services from pan-
india sellers and service providers through a unified 
online infrastructure. geM covers the entire gamut 
of the procurement process, right from vendor 
registration and item selection by buyers to receipt 
of goods and facilitation of timely payments. By 
extending the right capabilities, capacities, and 
functionalities, the portal has brought about 
a paradigm shift in india’s public procurement 
landscape.
need for a digital solution for public 
procurement
government procurement used to be opaque, 
time-consuming, cumbersome, and prone to 
corruption and cartelisation. Buyers were forced 
to purchase substandard goods at high, non- 
negotiable rates from unscrupulous suppliers. 
Potential sellers had to run from pillar to post, 
completely at the mercy of the facilitating agency, 
to get empaneled and then to get timely payments.
there was a pressing need for a complete 
metamorphosis from the Directorate general of 
supplies and Disposals to a digital e-commerce 
portal that could facilitate the ease of Doing 
Business without any barriers to entry and 
establish a competitive marketplace to enable 
the procurement of quality goods and services at 
reasonable rates. the new system was envisioned 
to replace age-old manual processes that were 
riddled with inefficiencies and corruption.
Genesis of Gem
government e-Marketplace was set up with 
a vision to transform the public procurement 
ecosystem of the country with a technologically 
advanced, robust, and digital-only platform.
through digitalisation of processes, geM has 
led to higher process efficiencies, information 
sharing, improved transparency, reduced process 
cycle times, and a higher level of trust among 
bidders. this, in turn, has resulted in greater 
competition and higher savings. t hese innovations 
in geM have also brought down waiting times and 
prices for buyers significantly, and ensured timely 
payments to sellers. its inclusive approach has 
created an open and diverse public procurement 
marketplace that provides a level playing field to 
startups, MsMes, women entrepreneurs, artisans, 
and craftsmen, allowing them to participate in 
government tenders without any barriers, thus 
ensuring the ease of Doing Business with the 
government.
Growth t rajectory
given the sheer scale and complexities 
involved in realigning the procurement 
processes of the entire spectrum of central 
and state government departments and Psus, 
the switchover to geM has likely been one of 
the largest digital transformation exercises 
undertaken by any government globally. 
Despite the challenges, the portal has witnessed 
significant year-on-year growth in terms of the 
numbers of sellers registered, total procurement 
made, and cumulative order value transacted 
through the platform.
in the first year, g eM recorded a total gross 
Merchandise value (gMv ) of ~inr 420 crore. i n the 
following years, transactions conducted through 
geM (in terms of order value) grew from around  
inr 38,000 crore in FY 20-21 to inr 1 lakh crore in  
FY 21-22. in FY 22-23, geM registered an 88% growth, 
surpassing a historic milestone of inr 2 lakh crore 
worth of gMv. in the current FY 23-24, geM is 
aspiring to breach the 3 lakh crore gMv mark.
While the platform initially developed a wide 
range of product categories, g eM rapidly expanded 
its portfolio to include a vast array of service 
offerings as well. the order value in services has 
been the brightest chapter in geM’s growth story, 
with exponential growth over the last 3 years. From 
FY 21-22 (inr 24,607) to FY 22-23 (inr 66,128), 
services on geM have witnessed unprecedented 
168% growth, with the number of orders also 
showing a massive jump. cumulatively, since 
inception, government buyers have placed over  
4.8 lakh service orders valued at more than  
inr 2 lakh crore.
geM is a category-driven e-marketplace that 
has a robust listing of more than 11,600 product 
categories and 300+ service categories. t he portal 
S
Page 3


22 January 2024
In India, public procurement amounts to nearly 20-25% of GDP . This 
means that a significant amount of taxpayers’ money is directed towards 
making purchases of public goods and services that constitute the 
lifeblood of government programmes and services. Given this context, 
the importance of efficient public procurement cannot be overstated. 
To inculcate the Hon’ble Prime Minister Narendra Modi’s vision of 
inclusive development, corruption-free governance, and ease of doing 
business, Government e-Marketplace (GeM) was conceptualised as a 
Special Purpose Vehicle under Section 8 of the Companies Act, within 
the ambit of the Department of Commerce. Since its inception, GeM has 
enabled more than INR 60,000 crore of public savings. The portal’s vast 
achievements have propelled it to ascend as one of the foremost public 
procurement platforms globally, surpassing even the most advanced 
counterparts such as South Korea’s KONEPS and Singapore’s GeBIZ 
across diverse metrics, all achieved in an astonishingly short period.
Government e-marketplace 
le AdIN g THe dIgITAl W AVe praShant kuMar Singh the author is director and Ceo, GeM, New delhi. email: ceo-gem@gov.in
23 January 2024
et up in August 2016, government 
e-Marketplace is a world-class, robust 
digital portal that facilitates end-to-end 
procurement of goods and services by 
various c entral and s tate g overnment departments, 
organisations, and allied public sector undertakings 
(Psus). it provides a paperless, cashless, and 
contactless ecosystem for government buyers to 
directly purchase products and services from pan-
india sellers and service providers through a unified 
online infrastructure. geM covers the entire gamut 
of the procurement process, right from vendor 
registration and item selection by buyers to receipt 
of goods and facilitation of timely payments. By 
extending the right capabilities, capacities, and 
functionalities, the portal has brought about 
a paradigm shift in india’s public procurement 
landscape.
need for a digital solution for public 
procurement
government procurement used to be opaque, 
time-consuming, cumbersome, and prone to 
corruption and cartelisation. Buyers were forced 
to purchase substandard goods at high, non- 
negotiable rates from unscrupulous suppliers. 
Potential sellers had to run from pillar to post, 
completely at the mercy of the facilitating agency, 
to get empaneled and then to get timely payments.
there was a pressing need for a complete 
metamorphosis from the Directorate general of 
supplies and Disposals to a digital e-commerce 
portal that could facilitate the ease of Doing 
Business without any barriers to entry and 
establish a competitive marketplace to enable 
the procurement of quality goods and services at 
reasonable rates. the new system was envisioned 
to replace age-old manual processes that were 
riddled with inefficiencies and corruption.
Genesis of Gem
government e-Marketplace was set up with 
a vision to transform the public procurement 
ecosystem of the country with a technologically 
advanced, robust, and digital-only platform.
through digitalisation of processes, geM has 
led to higher process efficiencies, information 
sharing, improved transparency, reduced process 
cycle times, and a higher level of trust among 
bidders. this, in turn, has resulted in greater 
competition and higher savings. t hese innovations 
in geM have also brought down waiting times and 
prices for buyers significantly, and ensured timely 
payments to sellers. its inclusive approach has 
created an open and diverse public procurement 
marketplace that provides a level playing field to 
startups, MsMes, women entrepreneurs, artisans, 
and craftsmen, allowing them to participate in 
government tenders without any barriers, thus 
ensuring the ease of Doing Business with the 
government.
Growth t rajectory
given the sheer scale and complexities 
involved in realigning the procurement 
processes of the entire spectrum of central 
and state government departments and Psus, 
the switchover to geM has likely been one of 
the largest digital transformation exercises 
undertaken by any government globally. 
Despite the challenges, the portal has witnessed 
significant year-on-year growth in terms of the 
numbers of sellers registered, total procurement 
made, and cumulative order value transacted 
through the platform.
in the first year, g eM recorded a total gross 
Merchandise value (gMv ) of ~inr 420 crore. i n the 
following years, transactions conducted through 
geM (in terms of order value) grew from around  
inr 38,000 crore in FY 20-21 to inr 1 lakh crore in  
FY 21-22. in FY 22-23, geM registered an 88% growth, 
surpassing a historic milestone of inr 2 lakh crore 
worth of gMv. in the current FY 23-24, geM is 
aspiring to breach the 3 lakh crore gMv mark.
While the platform initially developed a wide 
range of product categories, g eM rapidly expanded 
its portfolio to include a vast array of service 
offerings as well. the order value in services has 
been the brightest chapter in geM’s growth story, 
with exponential growth over the last 3 years. From 
FY 21-22 (inr 24,607) to FY 22-23 (inr 66,128), 
services on geM have witnessed unprecedented 
168% growth, with the number of orders also 
showing a massive jump. cumulatively, since 
inception, government buyers have placed over  
4.8 lakh service orders valued at more than  
inr 2 lakh crore.
geM is a category-driven e-marketplace that 
has a robust listing of more than 11,600 product 
categories and 300+ service categories. t he portal 
S
24 January 2024
showcases all common goods and services required 
by government bodies and departments at all levels 
of administration.
Gem – promoting ease of doing Business
y y Gem as a Facilitator: t he geM portal connects 
buyers, sellers, and service providers on a  
unified platform to facilitate procurement of 
public goods and services.
y y transformation through Cost reduction 
and efficiency: g eM has revolutionised 
public procurement in india by reducing 
costs, enhancing efficiency, and fostering 
transparency. the platform empowers buyers 
and sellers nationwide to engage in hassle-free 
digital transactions.
y y inclusive empowerment of sellers: geM 
empowers sellers of diverse backgrounds, 
including Women entrepreneurs, Artisans, self-
Help groups, c ooperatives, Mses, and s tartups, 
offering a one-stop-shop in a contactless, 
cashless, and paperless ecosystem with timely 
online payments.
y y seamless registration process – geM’s 
registration process prioritises ease, 
convenience, and minimal data entry. it is 
validated through online integration with the 
Aadhaar database, serving as the primary user 
identification proof.
y y dynamic Goods and services platform: 
geM continuously updates its platform by 
adding new categories of goods and services 
based on the feedback received from various 
stakeholders.
y y diverse buying modes: geM facilitates 
procurement through various modes, including 
direct purchase, L1 procurement, bidding, 
reverse auction, forward auction, single packet 
bidding, and push-button procurement.
y y Contract management: Keeping in line with 
the pr inciples of speed , efficienc y , and minimal                      
manual interference, geM auto-generates a 
contract between buyers and sellers on the 
basis of specified technical parameters and the 
details chosen by the buyer, such as delivery 
period and delivery terms. geM also provides 
the functionality of updating the contract, 
along with version control and an audit trail.
y y Cashless payments and timely transactions: 
t he platform supports 100% online payments, 
providing a truly cashless environment. it 
includes a payment gateway that supports 
internet banking and allows integration with 
different payment systems, with enforced 
timelines for timely payments.
y y information visibility: geM ensures visibility 
for Mses, local sellers, and startups, allowing 
sellers to indicate the percentage of domestic 
content of the goods uploaded on the portal, 
aligning with the ‘Make in india’ initiative.
y y trust-based rating system: in a trust-
based system like geM, ratings become a 
key component of the overall system. geM 
provides a rating system that continuously 
evaluates performance based on weighted and 
defined parameters. g eM has the provision of 
rating both the buyers and the sellers, enabling 
informed decision-making. 
y y demand Forecasting: geM displays historical 
procurement data on the platform based on 
the inputs provided by buyers as part of their 
annual procurement plan. this helps sellers 
plan better and ensure the availability of goods 
and services at lowered rates.
y y establishing price reasonability: g eM 
provides buyers with multiple tools to help them 
ascertain price reasonability. this includes the 
comparison of prices across other e- commerce 
sites (wherever available), discounts over MrP, 
the last purchase price on geM and the prices 
at which transactions have been conducted on 
geM for similar items in the recent past.
y y t raining: t o ensure that g eM users do not have 
to face any challenges in using the platform 
effectively, g eM provides adequate training 
materials and support to help users navigate 
the platform. it has designed e-procurement 
certifications and training modules to certify 
professionals specialised in procuring via the 
portal.
y y Communication and support: g eM provides 
a standardised and single channel for 
communication with stakeholders. it sends 
out communication to keep all stakeholders 
updated with all relevant changes, notices, etc. 
related to geM and informs users in case of an 
Page 4


22 January 2024
In India, public procurement amounts to nearly 20-25% of GDP . This 
means that a significant amount of taxpayers’ money is directed towards 
making purchases of public goods and services that constitute the 
lifeblood of government programmes and services. Given this context, 
the importance of efficient public procurement cannot be overstated. 
To inculcate the Hon’ble Prime Minister Narendra Modi’s vision of 
inclusive development, corruption-free governance, and ease of doing 
business, Government e-Marketplace (GeM) was conceptualised as a 
Special Purpose Vehicle under Section 8 of the Companies Act, within 
the ambit of the Department of Commerce. Since its inception, GeM has 
enabled more than INR 60,000 crore of public savings. The portal’s vast 
achievements have propelled it to ascend as one of the foremost public 
procurement platforms globally, surpassing even the most advanced 
counterparts such as South Korea’s KONEPS and Singapore’s GeBIZ 
across diverse metrics, all achieved in an astonishingly short period.
Government e-marketplace 
le AdIN g THe dIgITAl W AVe praShant kuMar Singh the author is director and Ceo, GeM, New delhi. email: ceo-gem@gov.in
23 January 2024
et up in August 2016, government 
e-Marketplace is a world-class, robust 
digital portal that facilitates end-to-end 
procurement of goods and services by 
various c entral and s tate g overnment departments, 
organisations, and allied public sector undertakings 
(Psus). it provides a paperless, cashless, and 
contactless ecosystem for government buyers to 
directly purchase products and services from pan-
india sellers and service providers through a unified 
online infrastructure. geM covers the entire gamut 
of the procurement process, right from vendor 
registration and item selection by buyers to receipt 
of goods and facilitation of timely payments. By 
extending the right capabilities, capacities, and 
functionalities, the portal has brought about 
a paradigm shift in india’s public procurement 
landscape.
need for a digital solution for public 
procurement
government procurement used to be opaque, 
time-consuming, cumbersome, and prone to 
corruption and cartelisation. Buyers were forced 
to purchase substandard goods at high, non- 
negotiable rates from unscrupulous suppliers. 
Potential sellers had to run from pillar to post, 
completely at the mercy of the facilitating agency, 
to get empaneled and then to get timely payments.
there was a pressing need for a complete 
metamorphosis from the Directorate general of 
supplies and Disposals to a digital e-commerce 
portal that could facilitate the ease of Doing 
Business without any barriers to entry and 
establish a competitive marketplace to enable 
the procurement of quality goods and services at 
reasonable rates. the new system was envisioned 
to replace age-old manual processes that were 
riddled with inefficiencies and corruption.
Genesis of Gem
government e-Marketplace was set up with 
a vision to transform the public procurement 
ecosystem of the country with a technologically 
advanced, robust, and digital-only platform.
through digitalisation of processes, geM has 
led to higher process efficiencies, information 
sharing, improved transparency, reduced process 
cycle times, and a higher level of trust among 
bidders. this, in turn, has resulted in greater 
competition and higher savings. t hese innovations 
in geM have also brought down waiting times and 
prices for buyers significantly, and ensured timely 
payments to sellers. its inclusive approach has 
created an open and diverse public procurement 
marketplace that provides a level playing field to 
startups, MsMes, women entrepreneurs, artisans, 
and craftsmen, allowing them to participate in 
government tenders without any barriers, thus 
ensuring the ease of Doing Business with the 
government.
Growth t rajectory
given the sheer scale and complexities 
involved in realigning the procurement 
processes of the entire spectrum of central 
and state government departments and Psus, 
the switchover to geM has likely been one of 
the largest digital transformation exercises 
undertaken by any government globally. 
Despite the challenges, the portal has witnessed 
significant year-on-year growth in terms of the 
numbers of sellers registered, total procurement 
made, and cumulative order value transacted 
through the platform.
in the first year, g eM recorded a total gross 
Merchandise value (gMv ) of ~inr 420 crore. i n the 
following years, transactions conducted through 
geM (in terms of order value) grew from around  
inr 38,000 crore in FY 20-21 to inr 1 lakh crore in  
FY 21-22. in FY 22-23, geM registered an 88% growth, 
surpassing a historic milestone of inr 2 lakh crore 
worth of gMv. in the current FY 23-24, geM is 
aspiring to breach the 3 lakh crore gMv mark.
While the platform initially developed a wide 
range of product categories, g eM rapidly expanded 
its portfolio to include a vast array of service 
offerings as well. the order value in services has 
been the brightest chapter in geM’s growth story, 
with exponential growth over the last 3 years. From 
FY 21-22 (inr 24,607) to FY 22-23 (inr 66,128), 
services on geM have witnessed unprecedented 
168% growth, with the number of orders also 
showing a massive jump. cumulatively, since 
inception, government buyers have placed over  
4.8 lakh service orders valued at more than  
inr 2 lakh crore.
geM is a category-driven e-marketplace that 
has a robust listing of more than 11,600 product 
categories and 300+ service categories. t he portal 
S
24 January 2024
showcases all common goods and services required 
by government bodies and departments at all levels 
of administration.
Gem – promoting ease of doing Business
y y Gem as a Facilitator: t he geM portal connects 
buyers, sellers, and service providers on a  
unified platform to facilitate procurement of 
public goods and services.
y y transformation through Cost reduction 
and efficiency: g eM has revolutionised 
public procurement in india by reducing 
costs, enhancing efficiency, and fostering 
transparency. the platform empowers buyers 
and sellers nationwide to engage in hassle-free 
digital transactions.
y y inclusive empowerment of sellers: geM 
empowers sellers of diverse backgrounds, 
including Women entrepreneurs, Artisans, self-
Help groups, c ooperatives, Mses, and s tartups, 
offering a one-stop-shop in a contactless, 
cashless, and paperless ecosystem with timely 
online payments.
y y seamless registration process – geM’s 
registration process prioritises ease, 
convenience, and minimal data entry. it is 
validated through online integration with the 
Aadhaar database, serving as the primary user 
identification proof.
y y dynamic Goods and services platform: 
geM continuously updates its platform by 
adding new categories of goods and services 
based on the feedback received from various 
stakeholders.
y y diverse buying modes: geM facilitates 
procurement through various modes, including 
direct purchase, L1 procurement, bidding, 
reverse auction, forward auction, single packet 
bidding, and push-button procurement.
y y Contract management: Keeping in line with 
the pr inciples of speed , efficienc y , and minimal                      
manual interference, geM auto-generates a 
contract between buyers and sellers on the 
basis of specified technical parameters and the 
details chosen by the buyer, such as delivery 
period and delivery terms. geM also provides 
the functionality of updating the contract, 
along with version control and an audit trail.
y y Cashless payments and timely transactions: 
t he platform supports 100% online payments, 
providing a truly cashless environment. it 
includes a payment gateway that supports 
internet banking and allows integration with 
different payment systems, with enforced 
timelines for timely payments.
y y information visibility: geM ensures visibility 
for Mses, local sellers, and startups, allowing 
sellers to indicate the percentage of domestic 
content of the goods uploaded on the portal, 
aligning with the ‘Make in india’ initiative.
y y trust-based rating system: in a trust-
based system like geM, ratings become a 
key component of the overall system. geM 
provides a rating system that continuously 
evaluates performance based on weighted and 
defined parameters. g eM has the provision of 
rating both the buyers and the sellers, enabling 
informed decision-making. 
y y demand Forecasting: geM displays historical 
procurement data on the platform based on 
the inputs provided by buyers as part of their 
annual procurement plan. this helps sellers 
plan better and ensure the availability of goods 
and services at lowered rates.
y y establishing price reasonability: g eM 
provides buyers with multiple tools to help them 
ascertain price reasonability. this includes the 
comparison of prices across other e- commerce 
sites (wherever available), discounts over MrP, 
the last purchase price on geM and the prices 
at which transactions have been conducted on 
geM for similar items in the recent past.
y y t raining: t o ensure that g eM users do not have 
to face any challenges in using the platform 
effectively, g eM provides adequate training 
materials and support to help users navigate 
the platform. it has designed e-procurement 
certifications and training modules to certify 
professionals specialised in procuring via the 
portal.
y y Communication and support: g eM provides 
a standardised and single channel for 
communication with stakeholders. it sends 
out communication to keep all stakeholders 
updated with all relevant changes, notices, etc. 
related to geM and informs users in case of an 
25 January 2024
update of product or service categories, end-
of-life information, a change in the technical 
parameters of goods or services, a new bid 
creation or modification, etc. An escalation matrix 
with well-defined sLAs has been implemented 
to ensure users receive expert help.
y y responsive Contact Centre: geM’s well-
equipped contact centre, accessible in 
multiple languages, addresses user queries 
across various communication channels. the 
integrated chatbot, Ask geMmy, route user 
concerns to the appropriate team.
y y dispute resolution features: geM introduced 
the vivad se vishwas-ii (contractual Dispute) 
functionality, a valuable feature for resolving 
disputes between buyers and sellers.
y y al -ml-Based decision support: g eM is in 
the process of implementing Ai/ML-based 
advanced analytics on geM, which will help 
geM reduce anomalies and frauds. these Ai- 
based models will provide real-time or near-
real-time feedback on various transactions 
happening on geM, and will help a buyer 
make informed decisions as well as prevent 
anomalous transactions.
y y Gem sahay: in a bid to address credit access 
challenges faced by MsMes and startups, geM 
has rolled out g eM s ahay, a mobile application 
that provides frictionless financing for Mses 
and startups, allowing them to obtain a loan 
at the point of order acceptance on the geM 
platform. t he platform allows all lenders, duly 
regulated by the reserve Bank of india, to 
participate and provide loans to geM sellers.
y y n ext-Gen Gem platform: geM has successfully 
onboarded a new Managed service Provider, 
viz. t ata c onsultancy s ervices, for designing and 
developing the next-gen geM platform with 
extensive use of cutting-edge technologies 
for ease of its users and for bringing in more 
efficiency and transparency.
roadmap for the Future
As the platform continues to evolve and bring 
in significant reforms, it ushers in the next wave of 
growth, transforming procurement across states. 
geM’s strategic focus is on expanding its reach 
by integrating government buyers across all tiers 
into its robust e-procurement infrastructure. 
With more and more states showing growing 
interest in procuring through geM, the platform 
is committed to maximising its regional footprint.
to combat the architectural challenges of 
scaling up and to meet the evolving demands of 
buyers and sellers, the platform has partnered 
with a leading it firm to revamp, re-design, and 
build a new modern solution leveraging new 
technologies while maintaining the current 
platform. the adaptable design will ease the 
onboarding of new sellers, driving greater 
participation from a more diverse vendor base, 
greater inclusivity, and more democratised access 
to the public sector market.
the upgraded platform intends to use 
advanced Artificial intelligence and Machine 
Learning technologies to identify potential frauds, 
provide improved data analytics to forecast 
more accurate projections, and improve supply 
chain management. to be more future-ready, 
geM is also looking at utilising the augmented 
and virtual reality to enable its buyers to have a 
more immersive procurement experience. geM 
is committed to guiding the buyer’s decision by 
enabling data- and insights-driven procurement. 
geM is also expanding its catalogue of ‘green’ 
products and services to help the country achieve 
its net zero carbon emissions commitment. 
services such as hiring of an agency for achieving 
climate action targets, help buyers understand, 
quantify, monitor, and realise carbon-neutral 
targets. the platform is focused on prioritising 
the listing and availability of environmentally 
sustainable products and services by targeting the 
largest-selling products and services on the portal.
in a short span, geM’s buyer-seller ecosystem 
and its operations are twice as large as 
Amazon india and Flipkart combined. geM has 
successfully established an infrastructure that 
not only captures data and facilitates end-to-
end activities of public procurement processes 
but also allows government buyers to source 
from multiple vendors at competitive rates. 
With improved functionalities, the platform is 
committed to adapting new-age technologies 
to transform public procurement with an aim 
to further enhance user experience, improve 
transparency, and induce greater inclusivity in 
public procurement process.                                    ?
Page 5


22 January 2024
In India, public procurement amounts to nearly 20-25% of GDP . This 
means that a significant amount of taxpayers’ money is directed towards 
making purchases of public goods and services that constitute the 
lifeblood of government programmes and services. Given this context, 
the importance of efficient public procurement cannot be overstated. 
To inculcate the Hon’ble Prime Minister Narendra Modi’s vision of 
inclusive development, corruption-free governance, and ease of doing 
business, Government e-Marketplace (GeM) was conceptualised as a 
Special Purpose Vehicle under Section 8 of the Companies Act, within 
the ambit of the Department of Commerce. Since its inception, GeM has 
enabled more than INR 60,000 crore of public savings. The portal’s vast 
achievements have propelled it to ascend as one of the foremost public 
procurement platforms globally, surpassing even the most advanced 
counterparts such as South Korea’s KONEPS and Singapore’s GeBIZ 
across diverse metrics, all achieved in an astonishingly short period.
Government e-marketplace 
le AdIN g THe dIgITAl W AVe praShant kuMar Singh the author is director and Ceo, GeM, New delhi. email: ceo-gem@gov.in
23 January 2024
et up in August 2016, government 
e-Marketplace is a world-class, robust 
digital portal that facilitates end-to-end 
procurement of goods and services by 
various c entral and s tate g overnment departments, 
organisations, and allied public sector undertakings 
(Psus). it provides a paperless, cashless, and 
contactless ecosystem for government buyers to 
directly purchase products and services from pan-
india sellers and service providers through a unified 
online infrastructure. geM covers the entire gamut 
of the procurement process, right from vendor 
registration and item selection by buyers to receipt 
of goods and facilitation of timely payments. By 
extending the right capabilities, capacities, and 
functionalities, the portal has brought about 
a paradigm shift in india’s public procurement 
landscape.
need for a digital solution for public 
procurement
government procurement used to be opaque, 
time-consuming, cumbersome, and prone to 
corruption and cartelisation. Buyers were forced 
to purchase substandard goods at high, non- 
negotiable rates from unscrupulous suppliers. 
Potential sellers had to run from pillar to post, 
completely at the mercy of the facilitating agency, 
to get empaneled and then to get timely payments.
there was a pressing need for a complete 
metamorphosis from the Directorate general of 
supplies and Disposals to a digital e-commerce 
portal that could facilitate the ease of Doing 
Business without any barriers to entry and 
establish a competitive marketplace to enable 
the procurement of quality goods and services at 
reasonable rates. the new system was envisioned 
to replace age-old manual processes that were 
riddled with inefficiencies and corruption.
Genesis of Gem
government e-Marketplace was set up with 
a vision to transform the public procurement 
ecosystem of the country with a technologically 
advanced, robust, and digital-only platform.
through digitalisation of processes, geM has 
led to higher process efficiencies, information 
sharing, improved transparency, reduced process 
cycle times, and a higher level of trust among 
bidders. this, in turn, has resulted in greater 
competition and higher savings. t hese innovations 
in geM have also brought down waiting times and 
prices for buyers significantly, and ensured timely 
payments to sellers. its inclusive approach has 
created an open and diverse public procurement 
marketplace that provides a level playing field to 
startups, MsMes, women entrepreneurs, artisans, 
and craftsmen, allowing them to participate in 
government tenders without any barriers, thus 
ensuring the ease of Doing Business with the 
government.
Growth t rajectory
given the sheer scale and complexities 
involved in realigning the procurement 
processes of the entire spectrum of central 
and state government departments and Psus, 
the switchover to geM has likely been one of 
the largest digital transformation exercises 
undertaken by any government globally. 
Despite the challenges, the portal has witnessed 
significant year-on-year growth in terms of the 
numbers of sellers registered, total procurement 
made, and cumulative order value transacted 
through the platform.
in the first year, g eM recorded a total gross 
Merchandise value (gMv ) of ~inr 420 crore. i n the 
following years, transactions conducted through 
geM (in terms of order value) grew from around  
inr 38,000 crore in FY 20-21 to inr 1 lakh crore in  
FY 21-22. in FY 22-23, geM registered an 88% growth, 
surpassing a historic milestone of inr 2 lakh crore 
worth of gMv. in the current FY 23-24, geM is 
aspiring to breach the 3 lakh crore gMv mark.
While the platform initially developed a wide 
range of product categories, g eM rapidly expanded 
its portfolio to include a vast array of service 
offerings as well. the order value in services has 
been the brightest chapter in geM’s growth story, 
with exponential growth over the last 3 years. From 
FY 21-22 (inr 24,607) to FY 22-23 (inr 66,128), 
services on geM have witnessed unprecedented 
168% growth, with the number of orders also 
showing a massive jump. cumulatively, since 
inception, government buyers have placed over  
4.8 lakh service orders valued at more than  
inr 2 lakh crore.
geM is a category-driven e-marketplace that 
has a robust listing of more than 11,600 product 
categories and 300+ service categories. t he portal 
S
24 January 2024
showcases all common goods and services required 
by government bodies and departments at all levels 
of administration.
Gem – promoting ease of doing Business
y y Gem as a Facilitator: t he geM portal connects 
buyers, sellers, and service providers on a  
unified platform to facilitate procurement of 
public goods and services.
y y transformation through Cost reduction 
and efficiency: g eM has revolutionised 
public procurement in india by reducing 
costs, enhancing efficiency, and fostering 
transparency. the platform empowers buyers 
and sellers nationwide to engage in hassle-free 
digital transactions.
y y inclusive empowerment of sellers: geM 
empowers sellers of diverse backgrounds, 
including Women entrepreneurs, Artisans, self-
Help groups, c ooperatives, Mses, and s tartups, 
offering a one-stop-shop in a contactless, 
cashless, and paperless ecosystem with timely 
online payments.
y y seamless registration process – geM’s 
registration process prioritises ease, 
convenience, and minimal data entry. it is 
validated through online integration with the 
Aadhaar database, serving as the primary user 
identification proof.
y y dynamic Goods and services platform: 
geM continuously updates its platform by 
adding new categories of goods and services 
based on the feedback received from various 
stakeholders.
y y diverse buying modes: geM facilitates 
procurement through various modes, including 
direct purchase, L1 procurement, bidding, 
reverse auction, forward auction, single packet 
bidding, and push-button procurement.
y y Contract management: Keeping in line with 
the pr inciples of speed , efficienc y , and minimal                      
manual interference, geM auto-generates a 
contract between buyers and sellers on the 
basis of specified technical parameters and the 
details chosen by the buyer, such as delivery 
period and delivery terms. geM also provides 
the functionality of updating the contract, 
along with version control and an audit trail.
y y Cashless payments and timely transactions: 
t he platform supports 100% online payments, 
providing a truly cashless environment. it 
includes a payment gateway that supports 
internet banking and allows integration with 
different payment systems, with enforced 
timelines for timely payments.
y y information visibility: geM ensures visibility 
for Mses, local sellers, and startups, allowing 
sellers to indicate the percentage of domestic 
content of the goods uploaded on the portal, 
aligning with the ‘Make in india’ initiative.
y y trust-based rating system: in a trust-
based system like geM, ratings become a 
key component of the overall system. geM 
provides a rating system that continuously 
evaluates performance based on weighted and 
defined parameters. g eM has the provision of 
rating both the buyers and the sellers, enabling 
informed decision-making. 
y y demand Forecasting: geM displays historical 
procurement data on the platform based on 
the inputs provided by buyers as part of their 
annual procurement plan. this helps sellers 
plan better and ensure the availability of goods 
and services at lowered rates.
y y establishing price reasonability: g eM 
provides buyers with multiple tools to help them 
ascertain price reasonability. this includes the 
comparison of prices across other e- commerce 
sites (wherever available), discounts over MrP, 
the last purchase price on geM and the prices 
at which transactions have been conducted on 
geM for similar items in the recent past.
y y t raining: t o ensure that g eM users do not have 
to face any challenges in using the platform 
effectively, g eM provides adequate training 
materials and support to help users navigate 
the platform. it has designed e-procurement 
certifications and training modules to certify 
professionals specialised in procuring via the 
portal.
y y Communication and support: g eM provides 
a standardised and single channel for 
communication with stakeholders. it sends 
out communication to keep all stakeholders 
updated with all relevant changes, notices, etc. 
related to geM and informs users in case of an 
25 January 2024
update of product or service categories, end-
of-life information, a change in the technical 
parameters of goods or services, a new bid 
creation or modification, etc. An escalation matrix 
with well-defined sLAs has been implemented 
to ensure users receive expert help.
y y responsive Contact Centre: geM’s well-
equipped contact centre, accessible in 
multiple languages, addresses user queries 
across various communication channels. the 
integrated chatbot, Ask geMmy, route user 
concerns to the appropriate team.
y y dispute resolution features: geM introduced 
the vivad se vishwas-ii (contractual Dispute) 
functionality, a valuable feature for resolving 
disputes between buyers and sellers.
y y al -ml-Based decision support: g eM is in 
the process of implementing Ai/ML-based 
advanced analytics on geM, which will help 
geM reduce anomalies and frauds. these Ai- 
based models will provide real-time or near-
real-time feedback on various transactions 
happening on geM, and will help a buyer 
make informed decisions as well as prevent 
anomalous transactions.
y y Gem sahay: in a bid to address credit access 
challenges faced by MsMes and startups, geM 
has rolled out g eM s ahay, a mobile application 
that provides frictionless financing for Mses 
and startups, allowing them to obtain a loan 
at the point of order acceptance on the geM 
platform. t he platform allows all lenders, duly 
regulated by the reserve Bank of india, to 
participate and provide loans to geM sellers.
y y n ext-Gen Gem platform: geM has successfully 
onboarded a new Managed service Provider, 
viz. t ata c onsultancy s ervices, for designing and 
developing the next-gen geM platform with 
extensive use of cutting-edge technologies 
for ease of its users and for bringing in more 
efficiency and transparency.
roadmap for the Future
As the platform continues to evolve and bring 
in significant reforms, it ushers in the next wave of 
growth, transforming procurement across states. 
geM’s strategic focus is on expanding its reach 
by integrating government buyers across all tiers 
into its robust e-procurement infrastructure. 
With more and more states showing growing 
interest in procuring through geM, the platform 
is committed to maximising its regional footprint.
to combat the architectural challenges of 
scaling up and to meet the evolving demands of 
buyers and sellers, the platform has partnered 
with a leading it firm to revamp, re-design, and 
build a new modern solution leveraging new 
technologies while maintaining the current 
platform. the adaptable design will ease the 
onboarding of new sellers, driving greater 
participation from a more diverse vendor base, 
greater inclusivity, and more democratised access 
to the public sector market.
the upgraded platform intends to use 
advanced Artificial intelligence and Machine 
Learning technologies to identify potential frauds, 
provide improved data analytics to forecast 
more accurate projections, and improve supply 
chain management. to be more future-ready, 
geM is also looking at utilising the augmented 
and virtual reality to enable its buyers to have a 
more immersive procurement experience. geM 
is committed to guiding the buyer’s decision by 
enabling data- and insights-driven procurement. 
geM is also expanding its catalogue of ‘green’ 
products and services to help the country achieve 
its net zero carbon emissions commitment. 
services such as hiring of an agency for achieving 
climate action targets, help buyers understand, 
quantify, monitor, and realise carbon-neutral 
targets. the platform is focused on prioritising 
the listing and availability of environmentally 
sustainable products and services by targeting the 
largest-selling products and services on the portal.
in a short span, geM’s buyer-seller ecosystem 
and its operations are twice as large as 
Amazon india and Flipkart combined. geM has 
successfully established an infrastructure that 
not only captures data and facilitates end-to-
end activities of public procurement processes 
but also allows government buyers to source 
from multiple vendors at competitive rates. 
With improved functionalities, the platform is 
committed to adapting new-age technologies 
to transform public procurement with an aim 
to further enhance user experience, improve 
transparency, and induce greater inclusivity in 
public procurement process.                                    ?
28 January 2024 28 JANuAry 2024