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Government e-Marketplace: Transparency, Efficiency, Key Facts - UPSC Notes

Also Read Government e-Marketplace: Transparency, Efficiency, Key Facts - UPSC Notes in Hindi

Syllabus

General Studies Paper II and General Studies paper III

Topics for Prelims

The Government e-Marketplace (GeM) 

Topics for Mains

GS Paper II- Governance and Social Justice sections, particularly regarding public procurement and transparency.

 

GS Paper III- Economy, GeM directly impacts the Indian economy by streamlining public procurement, fostering transparency, and promoting the participation of Micro, Small, and Medium Enterprises (MSMEs).

The Government e-Marketplace (GeM) stands as a dedicated online marketplace. Government e-marketplace (GeM) is a paperless, cashless, and contactless online procurement platform used by Government Departments, PSUs, and ministries to acquire goods and services transparently and efficiently. GeM ushers in a new era of efficiency, transparency, and convenience in public procurement, contributing to the growth of the Indian economy and streamlining government operations.

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What is a Government e-marketplace (GeM)?

GeM facilitates online procurement of common-use Goods & Services required by various Government Departments, Organisations, and PSUs. The initiative was launched in August 2016 by the Ministry of Commerce and Industry, Government of India. The current version of GeM, i.e., GeM 3.0, was launched on January 26, 2018. It provides the tools of e-bidding, reverse e-auction, and demand aggregation to facilitate government users, achieve the best value for their money, and enhance transparency, efficiency, and speed in public procurement.

Key Facts about Government e- marketplace (GeM)

Parameter

Details

Platform Name

Government e-Marketplace (GeM)

Nature

Online, paperless, cashless, and contactless procurement platform

Launched In

2016

Ministry in Charge

Ministry of Commerce and Industry

Developed By

Directorate General of Supplies & Disposals (DGS&D) with MeitY support

Legal Mandate

Rule 149 of General Financial Rules (GFR), 2017

Governing Notification

Government of India (Allocation of Business) Rules, 1961

Used By

Central and State Government Departments, PSUs, and Ministries

Core objectives of Government marketplace (GeM)

The core objectives of Government e-Marketplace (GeM) are to ensure transparency, efficiency, and speed in public procurement. It aims to reduce costs, promote fair competition, and simplify processes for all stakeholders.

  • Enhance transparency and efficiency in public procurement.
  • Speed up procurement cycles using automation and digital tools.
  • Ensure value for money through competitive and transparent bidding.
  • Promote ease of doing business by simplifying and systematizing transactions.

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GeM is a trailblazing initiative that propels the efficiency, speed, and transparency of public procurement of goods and services to new heights. Anchored under the Ministry of Commerce and Industries, it operates through the Directorate General of Supplies and Disposals (DGS&D). Noteworthy features of GeM include

Paperless and Cashless 

  • GeM transcends traditional procurement methods.
  • Embracing a paperless and cashless approach.
  • Minimizing human intervention and optimizing efficiency.

User-Friendly Interface

  • With an intuitive user interface, GeM facilitates seamless transactions.
  • Making it accessible to government officers and others involved in procurement processes.

Enhancing Transparency

  • GeM serves as a beacon of transparency.
  • Aligning with the goal of eliminating corruption from procurement operations.

Administered by Experts 

  • Under the aegis of the Ministry of Commerce and Industries, GeM is administered by experts in the field.
  • Ensuring its smooth and effective functioning.

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GeM Marketplace: Harnessing Advanced Features

The GeM Marketplace leverages cutting-edge digital devices to facilitate public procurement. Its developed features enable efficiency. Lower manual intervention and confirm clarity in government transactions.

Timely Payments

  • GeM 4.0 ensures that sellers receive timely payments.
  • Enhancing trust and promoting seamless transactions.
  • GeM 4.0 is the latest version of this dynamic marketplace.
  • introduces a plethora of advanced features that elevate its utility and user experience.

Advanced Search Engine

  • Incorporating Natural Language Processing (NLP).
  • The new search engine optimizes user queries, simplifying the procurement process.

Demand Aggregation 

  • Buyers can aggregate orders for the same product across various organizations within a ministry.
  • Fostering efficient procurement.

Revamped User Interface

  • GeM 4.0 boasts a revamped user interface.
  • Making navigation more intuitive and user-friendly.

Flexibility in Delivery

  • The option of staggered or flexible delivery caters to diverse procurement needs.
  • Enhancing convenience.

Enhanced Bidding Module 

  • GeM 4.0 introduces consignee-wise and item-wise bidding.
  • Facilitating more precise and customized procurement.

Integrating Advanced Technologies 

  • With the integration of analytics, machine learning, deep learning, and AI, GeM 4.0 keeps pace with technological advancements.

Empowering SMEs and Entrepreneurs

GeM empowers SMEs and entrepreneurs by providing them with direct access to government buyers and eliminating intermediaries. This fosters inclusive growth, promotes local businesses, and enables the vision of Aatmanirbhar Bharat. GeM extends its impact beyond procurement, empowering Small and Medium Enterprises (SMEs) and entrepreneurs:

Partnership with SIDBI 

GeM has collaborated with the Small Industries Development Bank of India (SIDBI) to support MSMEs, women entrepreneurs, and SHGs.

Special Initiatives

Initiatives like Womaniya and Startup Runway bolster women entrepreneurs, startup innovations, and economic inclusivity.

Startup Runway

Launched in 2019, this scheme promotes startups to engage with government buyers, catalyzing innovation and local job creation.

Womaniya Initiative

Enabling women entrepreneurs and SHGs to sell their products directly to government institutions, fostering gender-inclusive economic growth.

Know more on Pradhan Mantri Rojgar Protshan Yojana here!

Key Takeaways on Government e- Marketplace (GeM) For UPSC Aspirants!

 

Wide Product Range: Offers products and services across various categories like office supplies, IT, vehicles, etc.

 

Mandatory for Government Buyers: All central government ministries and many state departments must use GeM for purchases.

 

Cost Savings: Competitive bidding and reverse auctions help in getting lower prices.

 

Digital Integration: Integrated with Aadhaar, PAN, GST, and bank accounts for seamless operations.

Download Government e- Marketplace (GeM) Key Takeaways PDF

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