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A national public procurement portal that provides an end-to-end online marketplace for Central and State Government Ministries, Departments, Public Sector Undertakings (PSUs), and local bodies to procure common use goods and services.
Target Beneficiaries: Micro-small enterprises (MSEs), women and SC/ST entrepreneurs, and government procurement entities.
GS Paper: GS3
GeM was launched in 2016 to replace the century-old Directorate General of Supplies and Disposals (DGS&D), a legacy system prone to inefficiencies, manual delays, and lack of transparency in public procurement.
An initiative to enable women entrepreneurs and Self-Help Groups (SHGs) to sell handicrafts, handloom, and accessories directly to government ministries.
Promoting Startups, Women and Youth Advantage Through e-Transactions on the GeM portal.
A fintech solution providing instant, end-to-end digital financing for sellers against purchase orders received on the GeM platform.
A dedicated storefront for products made by rural Self-Help Groups under the Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM).
Metric
Exceeded ₹4 Lakh Crore
Source: PIB / Ministry of Commerce
Metric
Approximately 50%
Source: Economic Survey
Metric
Over 63 Lakh
Source: GeM Portal Dashboard
GeM has fundamentally democratized public procurement in India by removing entry barriers for Micro and Small Enterprises (MSEs). By shifting from a fragmented, manual system to a unified digital marketplace, it has significantly reduced the 'cost of doing business' with the government. The platform's ability to offer dynamic pricing and e-bidding has led to average savings of 10-15% for the exchequer, effectively curbing corruption and middleman intervention. However, the platform's maturity is tested by the 'L1' (Lowest Bidder) syndrome, which sometimes prioritizes cost over quality. While it has succeeded in urban and semi-urban clusters, the next phase of growth requires deeper penetration into rural 'One District One Product' (ODOP) clusters. Its evolution into a fintech-enabled ecosystem through GeM Sahay marks a transition from a mere marketplace to a comprehensive business support system for small entrepreneurs.
Analyze how the Government e-Marketplace (GeM) has transformed the landscape of public procurement in India while promoting MSME inclusivity.
Which of the following statements is/are correct regarding GeM? 1. It is mandatory for all Central Ministries to procure through GeM. 2. Private individuals can purchase goods from GeM.
Evaluate the role of GeM as a 'Digital Public Infrastructure' (DPI) in achieving the goals of 'Minimum Government, Maximum Governance'.
GeM Sahay is an initiative primarily aimed at:
Discuss the challenges faced by GeM in ensuring quality control and preventing cartelization in a digital marketplace.
Intro: GeM is a landmark Digital Public Infrastructure (DPI) initiative that has revolutionized the ₹50-lakh-crore public procurement market in India. Body: It addresses the 'Three Is' of governance—Inclusivity (by onboarding MSEs), Integrity (by eliminating corruption), and Innovation (through fintech integration). It aligns with Rule 149 of GFR 2017. Conclusion: By fostering a 'contactless, paperless, and cashless' environment, GeM serves as a cornerstone for Aatmanirbhar Bharat and the vision of a $5 trillion economy.
This scheme was AI-promoted and verified against the following source articles.