Important Facts For Prelims
GeM’s 8th Incorporation Day
- 20 May 2025
- 3 min read
Why in News?
On its 8th Incorporation Day, Government e Marketplace (GeM) reaffirmed its transformative role in driving inclusive economic growth and digital governance in India.
- GeM was incorporated on 17th May 2017 under the Companies Act, 2013.
What is Government e Marketplace (GeM)?
- About: GeM is an online platform to facilitate procurement of goods and services by various government departments and public sector units.
- It was launched on 9th August 2016 by the Ministry of Commerce and Industry.
- Objective: It ensures transparency, efficiency, and fairness in government procurement, streamlining processes and reducing corruption.
- Independent reviews, including the World Bank, report nearly 10% cost savings in government procurement, with nearly 97% of transactions fee-free and reductions of 33%-96% (capped at Rs 3 lakh) for large orders.
- User base: It serves as the Public Procurement Portal for purchasing goods and services across all Central and State Government Ministries, Departments, Public Sector Units (PSUs), and their affiliates.
- Product Range: It offers a wide range of products and services, e-bidding, reverse e-auction, and demand aggregation.
- The Ministry of Finance has authorized and made purchases through GeM mandatory for government users under the General Financial Rules, 2017.
- Ownership: It is managed by GeM SPV (Special Purpose Vehicle), a completely government-owned (100%), not-for-profit entity established under the Ministry of Commerce and Industry.
- Inclusivity: It empowers diverse Indian entrepreneurs, including MSEs, startups, women-led enterprises, artisans, and weavers.
- Over 10 lakh MSEs, 1.3 lakh artisans and weavers, 1.84 lakh women entrepreneurs, and 31,000 startups are now part of the GeM ecosystem.
- Progress: GeM’s user base has tripled, now including over 1.64 lakh buyers and 4.2 lakh active sellers, offering 10,000+ product categories and 330+ services.
- Pan-India Adoption: GeM is now adopted in all 36 States and UTs, with Uttar Pradesh leading and eight states, including Maharashtra, Gujarat, and Assam, mandating its use.
- Technological Advancement: It has launched GeMAI, India’s first generative AI-powered chatbot in the public sector, supporting voice and text in 10 Indian languages, to improve user support and inclusive service delivery.
