What Is The Government E-Marketplace & What Are Its Benefits For MSMEs?

GeM (Government e-Marketplace) is an online marketplace in India for public procurement. The Ministry of Commerce and Industry, the Government of India, and the Modi government started the project on August 9, 2016, intending to create an open and transparent procurement platform for government buyers. It was built in a record-breaking 5 months to make the online acquisition of goods and services easier. The Ministry of Finance has authorised and made mandatory purchases by government users through GeM by adding a new Rule №149 to the General Financial Rules, 2017. GeM SPV (Special Purpose Vehicle), a 100 per cent government-owned, non-profit business under the Ministry of Commerce and Industries of the Government of India, owns the platform.

Benefits of GeM

The platform promises to improve public procurement transparency, efficiency, and speed while also promoting inclusivity. It supports all procurement methods, including direct purchase, e-bidding, reverse e-auction bidding, and direct reverse auction. Economies of scale, efficient price discovery, and the diffusion of best practices are all possible thanks to the digital platform. As reflected in Rule 149 of the General Financial Rules, 2017, the procurement of goods and services by ministries or government agencies has been made mandatory for Goods or Services offered on the GeM site. Purchases from GeM are also encouraged by Public Sector Enterprises and State Governments.

Benefits on MSMEs

MSMEs account for roughly 26% of all sellers and suppliers on the Government e-Marketplace. Following the execution of the budget, the government hopes and works to increase this figure. The online platform seeks to onboard a big number of MSMEs as part of its MSME assistance and outreach initiative.

The government is working to make loans more accessible to MSMEs to encourage and support their participation in GeM. This is a very important phase for entrepreneurs. Service industries such as analytic services, inspection, webcasting, and transportation are now being targeted by the government e-marketplace.

Multiple tiers of authentication have been abolished in the government e-marketplace. The lead time in government procurement is greatly reduced as a result of this. Similarly, MSMEs may quickly register and take advantage of these new prospects. Additionally, by registering with GeM, they eliminate the need for intermediaries.