GOVERNMENT E-MARKETPLACE (Syllabus: GS Paper 3 - Economy)

Context:  The procurement of goods and services by central public sector enterprises (CPSEs) through Government e-Marketplace (GeM) grew 74 per cent to Rs 42,510 crore during the first four months of 2023-24 over the corresponding period in the previous year.

Government e-Marketplace

• About: GeM is a contactless, paperless and cashless online marketplace that replaced the Directorate General of Supplies and Disposals (DGS&D) in 2016.
• Origin: The initiative was launched on August 9, 2016 by the Ministry of Commerce and Industry, Government of India with the objective to create an open and transparent procurement platform for government buyers.
• It was created in a record time of 5 months to facilitate online procurement of goods and Services. 
• General Financial Rules, 2017: The purchases through GeM by Government users has been authorized and made mandatory by the Ministry of Finance by adding a new Rule in the General Financial Rules, 2017.
• Nodal Authority: The platform is owned by GeM SPV (Special Purpose Vehicle) which is a 100 per cent Government-owned, non-profit company under the Ministry of Commerce and Industries, Government of India.
• The Government of India has made it mandatory for sellers to display the 'country of origin' on products to be sold on GeM portal.
• Key Features: 
• It is a one stop portal to facilitate online procurement of common use Goods and Services.
• The portal is open for all government buyers— Central and State Ministries, departments, public sector enterprises etc.
• Private buyers cannot buy on the platform but private people can sell products to government bodies through the portal.

• Significance of GeM:

• Transparent and Cost-effective Procurement.
• Promotion of Atma Nirbhar Bharat.
• Entry of Small Local Sellers.