GeM Becomes a Major Platform for Small Entrepreneurs
The Government e-Marketplace (Gem) has emerged as a prominent platform for small businesses over the past eight years, providing them with greater access to opportunities under the ‘Make in India’ initiative. GeM has revolutionized procurement by allowing small and medium enterprises, as well as women entrepreneurs, to register and showcase their products and services directly to government buyers.
So far, more than 26,000 startups have joined the platform, facilitating transactions worth ₹29,000 crores. In the financial year 2023-24 alone, startups received over 97,000 orders through GeM, making it a preferred marketplace for government procurement.
Encouraging Higher Procurement from States
The central government has directed all ministries, departments, and public sector units to prioritize purchasing through GeM. This ensures transparency and efficiency in procurement. States have also been encouraged to leverage GeM for their needs. Many states have already adopted the platform, expanded its reach and increased the number of suppliers.
Reducing Transaction Fees
In a move to further support small businesses, GeM has slashed its transaction fees by up to 96%. For orders below ₹3 lakh, no transaction fee will be charged. Orders between ₹3 lakh and ₹10 crore will have a transaction fee of 0.45%. For orders above ₹10 crore, the transaction fee will be capped at ₹39 lakh, regardless of the order size.
This reduction in transaction fees has significantly benefited small and medium enterprises, making it easier for them to compete in government tenders and expand their business reach.
Boosting Small Enterprises and Startups
The GeM platform has been instrumental in bringing new technologies and innovative products from startups to the forefront. It provides a direct link between government buyers and sellers, eliminating intermediaries and enhancing transparency.
Prime Minister Narendra Modi inaugurated GeM in September 2016 to support the ‘Make in India’ initiative and boost local manufacturing. Since its inception, GeM has become a vital platform for small entrepreneurs, enabling them to supply their products directly to government departments.
Enhancements in the Platform
The platform’s user-friendly interface has been upgraded to include a special feature, ‘GeM SAHAY,’ which allows for easy access to loans for sellers. The “GeM SAHAY” feature has simplified the financing process, ensured timely payments and enabling businesses to operate smoothly.
GeM has also introduced a vendor rating system to maintain the quality and standard of products. This helps buyers make informed decisions based on past performance and customer feedback.
Increased Number of Bids from Indian Sellers
Over the years, the number of bids from Indian suppliers on the platform has grown exponentially. As of September 2024, 81% of the tenders floated on GeM were fulfilled by Indian suppliers. This has contributed to a robust supply chain and improved the visibility of indigenous products.
The Government e-Marketplace continues to play a crucial role in the economic development of the country by empowering small entrepreneurs and startups, promoting transparency in procurement, and supporting the ‘Make in India’ initiative. With its ongoing reforms and improvements, GeM is set to become an even larger contributor to the growth of the Indian economy.
