GeM Q1 FY 24-25: Record Growth and Focus on Innovation

The Government e-Marketplace (GeM) has achieved remarkable success in the first quarter of FY 24-25, demonstrating its commitment to efficient and inclusive public procurement.

Soaring Growth and Sectoral Breakdown

• GeM’s Gross Merchandise Value (GMV) reached a staggering ₹1,24,761 crore, reflecting a massive 136% increase compared to Q1 of FY 23-24. This growth signifies the platform’s increasing adoption by government buyers and sellers.
• The services segment emerged as a significant driver, achieving a GMV of over ₹80,500 crore – a phenomenal 330% growth year-on-year. This highlights the growing demand for services through GeM.

Strengthening Public Procurement

• Procurement by Central Ministries and CPSEs (Central Public Sector Enterprises) crossed the ₹1 lakh crore milestone, with Ministries of Coal, Defence, and Petroleum & Gas leading the charge. This indicates increased participation from key government departments.
• GeM launched the “GeM SAHAYAK” program to create a nationwide network of trained and certified personnel who will assist new and existing sellers in navigating the platform and maximising business opportunities. This initiative aims to simplify public procurement for both buyers and sellers.

Easing Participation and Reducing Costs

• GeM implemented a new revenue policy that significantly reduces transaction charges for sellers and service providers. This step encourages greater seller participation and promotes a more competitive marketplace.
• Notably, 96.5% of transactions during FY 23-24 were exempt from transaction fees, highlighting GeM’s affordability for smaller transactions.

Promoting Local Businesses

GeM launched “The Aabhar Collection” within its #VocalforLocal initiative. This online store showcases over 120 handcrafted gift items and hampers from ODOP (One District One Product) and GI (Geographical Indication) categories, empowering local artisans and offering government buyers a wider selection for official events.

Boosting Awareness and Capacity Building

• GeM has intensified awareness campaigns and capacity-building efforts. Collaborations with organisations like DICCI (Dalit Indian Chamber of Commerce & Industry) and training sessions conducted across the country are enhancing user engagement.
• GeM’s new interactive and multilingual training courses have garnered significant interest, with over 4,500 participants enrolling within four months.

Embracing AI for Enhanced User Experience

• GeM plans to deploy “GeMAI,” a generative AI-powered chatbot, in the coming quarter. This tool will leverage AI to analyse user queries and provide efficient solutions.
• GeM is also exploring conversational analytics and business intelligence powered by generative AI to build a more robust chatbot experience.

Additional Advancements

• To gain a comprehensive view of platform performance, GeM plans to implement a comprehensive monitoring tool.
• A project to geo-tag user addresses is underway, enabling location-based data visualisation for better analysis of transactions.

Beyond Numbers: Transparency and Inclusiveness

• GeM has made significant strides in promoting transparency and reducing corruption in public procurement.
• The platform empowers small-scale sellers by providing them with a level playing field to compete for government contracts.
• GeM significantly improves time efficiency by streamlining the procurement process.

Building on a Strong Foundation

GeM’s achievements in Q1 FY 24-25 solidify its position as a game-changer in public procurement. By embracing innovation, promoting inclusivity, and fostering transparency, GeM is well on its way to achieving its vision of a more efficient and effective government procurement ecosystem.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.