Govt. purchase of goods from MSMEs in GeM crosses Rs 74.5k crore

According Commerce Ministry and a report by Financial Express, the ease of doing business for MSMEs reported that the average daily order value for Government e-marketplace (GEM) increased by a whopping 282% from Rs 34.13 crore in April 2020 to Rs 130.53 crore in October 2020

Governments public procurement portal Government eMarketplace (GeM) has crossed Rs 74,552 crore as of December 30, 2020.

The Commerce Ministry on Monday said that the marketplace has 17.6 lakh listed products, 9 lakh sellers and service providers and 11,543 product categories “promoting transparent public procurement while giving a fair opportunity and level playing field to vendors.”

The central government had launched the GeM in August, 2016 with an aim to enhance speed and transparency in  how the government procures and benefits small businesses.

The GeM on its twitter handle tweeted that, “GeM was started with an objective to transform the legacy procurement system in the country. A rapid growth in Avg Order Value per day in the current FY 2020-21 is showing the higher acceptability of the platform for procurement purpose.”

A total of new 40,212 new sellers on an average per month and 486 product categories have been added every month in 2020. While in the November month itself it added 1 lakh sellers registered under the Udham Aadhar under the MSME Ministry.

While the order value of Covid-19 related products have been declining since November as it peaked in October, the government’s purchase of such good including medical and allied products via GeM was at Rs 389.4 crore in November approximately down by 61 percent from Rs 996.9 crore in October 2020 as per Financial Express’s analysis of the GeM data.