GeM procurement hits US$ 14.85 billion (Rs. 1.24 trillion) in the first quarter, set to be the world's largest in FY25

The Government e-Market (GeM) platform achieved a significant milestone in the first quarter of 2024-25, with procurement exceeding US$ 14.85 billion (Rs. 1.24 trillion), a remarkable 136% increase from the previous year's US$ 6.31 billion (Rs. 52,670 crore). GeM CEO Mr. Prashant Kumar Singh projected that at its current growth rate, GeM is on track to become the world's largest procurement platform by the fiscal year's end, surpassing competitors like South Korea's KONEPS and Singapore's GeBIZ. Central ministries and CPSEs played a pivotal role in this achievement, surpassing US$ 11.97 billion (Rs. 1 trillion) in procurement, with ministries such as coal, defence, and petroleum and gas leading the charge.

Services emerged as the dominant sector, with transactions exceeding US$ 9.64 billion (Rs. 80,500 crore) during the quarter. GeM announced plans for the 'GeM SAHAYAK' program to enhance accessibility and efficiency in public procurement. This initiative aims to establish a nationwide network of 6,000-7,000 trained, accredited trainers who will assist sellers and buyers in navigating the portal effectively.

In line with efforts to support local businesses, GeM has reduced transaction charges for sellers under its revised revenue policy, now charging only 0.30% of the order value (down from 0.45%) for orders exceeding US$ 5,987.54 (Rs. 5 lakh), capped at US$ 3,592.53 (Rs. 3 lakh). Additionally, 'The Aabhar Collection' was introduced to showcase hand-crafted products from the One District One Product (ODOP) and Geographical Indication (GI) categories, reinforcing the government's commitment to promoting Indigenous goods.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.