GeM Witnesses Remarkable Growth in Service Procurement

The Government e-Marketplace (GeM), India's public procurement portal, has witnessed a remarkable surge in the procurement of services from Micro, Small, and Medium Enterprises (MSMEs) during the financial year 2023-24. According to recent data, the value of services procured from MSMEs witnessed an astonishing 205% year-on-year increase.

GeM announced that the gross merchandise value (GMV) of services on the portal reached an unprecedented Rs 2.07 lakh crore, contributing to nearly 50% of the total GeM GMV during the fiscal year. This surge can be attributed to the launch of 36 new service categories, bringing the total number of listed services to 320 alongside 11,926 product categories.

The platform boasted its ability to cater to the dynamic needs of government buyers across all levels of administration, reflecting its commitment to streamlining and enhancing the public procurement process.

As of June 14, 2024, GeM's GMV stood at Rs 1.01 lakh crore, with over 8 lakh orders facilitated, of which 41% were attributed to micro and small enterprises. This highlights the platform's commitment to promoting and supporting the MSME sector, which plays a vital role in driving economic growth and generating employment opportunities.

The value of overall procurement from MSEs by CPSEs hit a new high in FY24, reaching Rs 75,253 crore, a 16.2 percent increase from the Rs 64,721 crore recorded in FY23. The share of purchases from MSEs stood at 35.6 percent, benefiting 2.18 lakh enterprises, compared to 37.1 percent involving 2.36 lakh enterprises in the previous fiscal year.

According to the government's procurement policy, central public sector enterprises (CPSEs) are mandated to procure at least 25% of their total procurement value from MSEs annually, with 4% to be sourced from MSEs owned by Scheduled Caste/Scheduled Tribe entrepreneurs and 3% from MSEs owned by women entrepreneurs. This policy aims to promote inclusive growth and provide equal opportunities for businesses across diverse segments.

The remarkable growth witnessed by GeM in MSME service procurement and overall operations highlights the platform's success in streamlining public procurement processes, promoting transparency, and fostering an environment conducive to the growth and development of MSMEs in India.



Comment (0)