Government's GeM procurement platform catches up to e-commerce giants

By

Isabelle Crossley

Published
Feb 2, 2023

The government’s ‘Government E-Market’, abbreviated to GeM, is swiftly growing in terms of both revenue and its seller base. The portal is now comparable to some of India’s e-commerce giants, according to a survey by the Economic Times. 

“The GeM has witnessed tremendous growth in gross merchandise value and is catching up with e-commerce giants like Amazon and Flipkart,” said the Economic Survey, the Press Trust of India reported. “GeM attained an annual procurement of Rs 1 lakh crore within [the] fiscal year 2022, representing a 160% growth compared to last FY [financial year]… 57% of the total business on GeM has come through the MSME [micro, small, and medium enterprise] units, and female entrepreneurs have contributed over 6%.” 
 
This financial year saw purchasing on the GeM portal cross the Rs 1 lakh crore mark on November 29, 2022 due to increased buying activity. The portal is designed for the online purchase of goods and services by all central government ministries and departments as well as other public sector units. 

The GeM aims to encourage self-help groups, tribal communities, weavers, artisans, and MSMEs to list products on the portal to help these entities increase their revenues. This is in line with the government’s wider goal of boosting domestic production and boosting local industry. The GeM was first launched by the Ministry of Commerce in 2016.