GeM Portal Procurement Hits Rs 4 Trillion in FY24

Context

The government’s e-Market portal, GeM, has surpassed Rs 4 trillion in procurement of goods and services this fiscal year. This shows how the portal’s advanced digital features have improved efficiency, transparency, and smoothness in public procurement processes.

More on News

• A senior government official announced that the procurement of goods and services through the Government e-Market (GeM) portal has exceeded Rs 4 trillion this fiscal year, as ministries and departments have increased their purchasing activities. 
• At present, various government entities are permitted to make transactions through this portal, which offers a diverse range of products such as office supplies and vehicles. 
• The government frequently purchases automobiles, computers, and office furniture through this platform.

About GeM

• Government e-Marketplaces (GeM) have emerged as a transformative tool in modernising procurement practices. 
• GEM is an e-government marketplace that is capable of carrying out procurement through buying and selling of goods and services by the Central Government and other state governments as well as affiliated organisations.
• It is a project which was set up by the Ministry of Commerce & Industry in 2016 and should be implemented by the Ministry of Finance while making government purchases of goods. GeM targets to get through the whole thing of speed, efficiency, and transparency in the public sector purchasing.

Purpose

• The purpose is to simplify procurement through information from different purchasing ways like direct purchase, reverse e-auction, e-bidding, and direct reverse auction to improve efficiency, transparency, and speed on the market.
• Ministries and government departments will have to make participation in made available procurement portals compulsory.
• The objective is to help the setting of fair prices, exploit economies of scale and to share the best practices.

Key features of GeM

Streamlining Procurement Processes

The way the private sector deals with a traditional procurement process in public institutions usually involves many papers, lots of bureaucratic obstacles, and quite long approval cycles. GeM eliminates the multiple and disseminated activities by simply establishing an online central environment for all procurement operations. Through requisition to payment, such tasks fall into the category of digitalised operation, consequently making it possible to reduce the amount of time and resources invested in procurement.

Enhancing Transparency and Accountability

Transparency is a must element in public procurement in order that fairness should be kept and corruption should be, however, prevented. Transparency is one of the core principles of GeM and this is achieved by digitising the procurement transaction process and by putting up a detailed audit trail. All procurement activities are registered and can be controlled in real-time, which could be a contributor for development accountability and fraud or malpractices minimisation.

Promoting Fair Competition and Inclusivity

GeM puts a stamp on the suppliers of all the sizes, including SMEs. Through the removal of geographical boundaries and bureaucratic hurdles, the platform empowers SMEs to compete on the same level of the playground with MNCs in terms of the quality and competitiveness of their products and services. This creates a level playing field, encourages economic growth, and provides different options for local consumers.

Achieving Cost-Effectiveness

Merging the government procurements in one platform which is like GeM generates large-scale savings from bulk orders. Moreover, digitization makes the whole processes of administrative and transaction costs less costly. This skimming of costs simply returns a great deal of money to government agencies and their tax payers in the process ensuring that value for money is well observed in procurement.

Facilitating Vendor Ratings and Performance Evaluation

GeM has a built-in module for buyer rating and feedback, which enables the consumers to evaluate the manner of vendor work and services, based on their actual experience. This feedback mechanism minimises the chances of fraud whose intention is just to get quick cash and ensures that vendors maintain high standards of both quality and services. In addition, it empowers purchasers to make informed decisions and settle for contractors with confirmed reputation for efficiency and reliability.

Conclusion

The Government e-Market (GeM) portal has achieved a significant milestone by exceeding Rs 4 trillion in procurement this fiscal year. This demonstrates the significant benefits of using advanced digital features in public procurement processes, as GeM has become essential for government entities to simplify their purchasing activities and improve efficiency, transparency, and effectiveness in procurement operations.

Source: The Indian Express

UPSC Mains Practice Question

Q.Discuss the significance of the Government e-Market (GeM) portal in modernising public procurement processes in India. Highlight its key features and benefits, and analyse the challenges and opportunities associated with its implementation.

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