Prime Minister Modi Celebrates 8 Years of Government e-Marketplace (GeM)
New Delhi [India], August 9: Prime Minister Narendra Modi praised the Government e-Marketplace (GeM) for its outstanding achievements as the platform celebrated its 8th anniversary. PM Modi highlighted GeM’s role in promoting inclusive economic growth and empowering entrepreneurs, especially those from marginalized communities.
In a post on X, PM Modi said, “Compliments to all stakeholders of @GeM_India on the platform completing 8 years. This platform has achieved an impressive cumulative sale of nearly Rs. 10 lakh crore. But, most importantly it has provided opportunities to entrepreneurs, particularly those associated with MSMEs, StartUps and those belonging to SC, ST and OBC communities. GeM has also gone a long way in furthering women empowerment.”
The Ministry of Commerce and Industry reported that the Gross Merchandise Value (GMV) of orders on GeM reached Rs 1.24 lakh crore by the end of the first quarter of the financial year 2024-25, showing a growth of over 136% compared to last year’s GMV of Rs 52,670 crore. The services segment was a major contributor, with a GMV of more than Rs 80,500 crore, a 330% increase over the same period in FY 2023-24.
Central Ministries, including Central Public Sector Enterprises (CPSEs), procured goods and services worth over Rs 1 lakh crore during this period. The Ministries of Coal, Defence, and Petroleum & Gas were the top procurers, highlighting their role in supporting the national economy.
GeM has become a vital tool for Micro, Small, and Medium Enterprises (MSMEs), Startups, and businesses owned by SC, ST, and OBC communities, as well as women entrepreneurs, providing them with access to government procurement opportunities.
To further support sellers, GeM is launching the ‘GeM SAHAYAK’ program, which will create a network of 7,000 trained and certified trainers to assist sellers in using the platform effectively. Buyers will also benefit from these trainers’ services, particularly in bid creation and other value-added services.
In an effort to make the platform more competitive, GeM has reduced transaction charges for sellers. Under the new policy, sellers will be charged only 0.30% of the order value for orders exceeding Rs 5 lakh, down from the previous 0.45%, with a cap of Rs 3 lakh, significantly lower than the earlier cap of Rs 72.50 lakh.
GeM has also launched “The Aabhar Collection,” featuring over 120 handcrafted gift items from the One District One Product (ODOP) and Geographical Indication (GI) categories, priced between Rs 500 and Rs 25,000, to promote local artisans.
During the quarter, GeM expanded its reach through partnerships and training programs, signing MoUs with the Dalit Indian Chamber of Commerce & Industry (DICCI), Assam Startup Nest, and the North Eastern Development Finance Corporation Limited (NEDFi). Over 320 training sessions were conducted, and interactive multilingual training courses saw significant engagement.
Launched in 2016, GeM has grown into a comprehensive e-procurement platform, streamlining government procurement processes and providing a marketplace for sellers across India.
Doubts Revealed
Prime Minister Modi -: Prime Minister Modi is the leader of India. He makes important decisions for the country.
Government e-Marketplace (GeM) -: GeM is an online platform where government departments can buy goods and services. It helps make buying things easier and more transparent.
inclusive economic growth -: Inclusive economic growth means that everyone, including poor and marginalized people, benefits from the country’s economic progress.
marginalized communities -: Marginalized communities are groups of people who are often left out or treated unfairly in society. This can include poor people, certain castes, or tribes.
cumulative sale -: Cumulative sale means the total amount of money made from selling things over a period of time.
Rs. 10 lakh crore -: Rs. 10 lakh crore is a very large amount of money. One lakh crore is equal to 1 trillion rupees.
Ministry of Commerce and Industry -: This is a part of the Indian government that looks after trade, business, and industries in the country.
GMV -: GMV stands for Gross Merchandise Value. It is the total value of goods sold through a marketplace.
FY 2024-25 -: FY stands for Fiscal Year, which is a one-year period used for accounting and budgeting. FY 2024-25 means the financial year from 2024 to 2025.
GeM SAHAYAK -: GeM SAHAYAK is a new program to help sellers on the GeM platform. ‘Sahayak’ means helper in Hindi.
transaction charges -: Transaction charges are fees that sellers have to pay when they sell something on the platform.
The Aabhar Collection -: The Aabhar Collection is a special set of products made by local artisans. ‘Aabhar’ means gratitude in Hindi.
local artisans -: Local artisans are people who make handmade goods, like crafts and art, often using traditional methods.
