Context:

• The Government e-Marketplace (GeM), launched on 9 August 2016, has completed a decade of operations.
• It has emerged as India's flagship digital public procurement platform, replacing the erstwhile Directorate General of Supplies and Disposals (DGS&D).
• There is the need to highlight GeM's contribution to transparent governance, Ease of Doing Business (EoDB), MSME promotion, and Viksit Bharat 2047.

Government e-Marketplace (GeM) - An Overview:

• GeM is a one-stop digital platform for public procurement by Central and State governments, PSUs and autonomous bodies.
• It connects 1.37 lakh government buyers with 25 lakh sellers and service providers.
• It integrates the entire procurement cycle, for example, product discovery, e-bidding, contract award, digital payments, and audit trail.
• The erstwhile DGS&D was criticised for opaque and non-competitive procurement practices.

Key Achievements in a Decade:

• Enhancing transparency and accountability:
  • The entire procurement process has been digitised, reducing human discretion.
  • Every transaction leaves a traceable digital audit trail, strengthening accountability.
  • It minimises corruption, favouritism and procedural delays in government procurement.
• Promoting EoDB:
  • Introduced a single-window digital marketplace for procurement, simplifying registration and standardised procurement procedures.
  • Policy reforms include: Removal of Caution Money Deposit, rationalisation of transaction charges, and lower compliance costs have widened participation.
• Boosting inclusive economic growth:
  • GeM has expanded market access for traditionally underrepresented groups, for example, MSMEs; Start-ups; women entrepreneurs; and businesses from Tier-II, Tier-III cities and rural areas.
  • These enterprises can directly sell to government buyers without intermediaries, creating a more level playing field.

Performance Indicators:

• Contribution to 'Make in India' and Atmanirbhar Bharat:
  • Preference for domestic manufacturers and service providers strengthens indigenous production.
  • Reinforces local value chains and reduces dependence on imports.
  • MSEs account for nearly 60% of total orders (by volume) and over 45% of Gross Merchandise Value (GMV) on GeM.
• Other indicators:
  • Annual GMV has crossed ₹5 lakh crore in each of the last two financial years.
  • Cumulative procurement value has reached around ₹20 lakh crore.
  • The platform now hosts approximately 10,644 product categories, and 350 service categories.
  • These figures reflect GeM's growing role in India's public procurement ecosystem.

Improving Public Service Delivery and its Impact:

• Efficient procurement through GeM:
  • It has enhanced delivery across critical sectors, including healthcare (medicines and vaccines), defence procurement (including drones), infrastructure development, and rural public services.
  • Transparent procurement ensures better utilisation of taxpayer funds while improving the quality and timeliness of public services.
• Economic impact:
  • According to an IIT Delhi study, GeM generated an estimated ₹86,571.69 crore in monetised benefits over the last three financial years.
  • Gains arose from lower procurement prices, greater process efficiency, reduced transaction costs and delays.
• GeM and digital governance:
  • GeM exemplifies India's expanding Digital Public Infrastructure (DPI) model by combining e-governance, transparency, data-driven decision-making, competitive procurement, and inclusive participation.
  • It advances constitutional principles of good governance, accountability and efficient utilisation of public resources.

Future Vision:

• Priorities as GeM enters its 2nd decade:
  • Adoption of emerging technologies for smarter procurement.
  • Building a globally benchmarked digital procurement platform.
  • Promoting green and sustainable procurement.
  • Expanding participation of Start-ups, innovators, women entrepreneurs, youth, MSMEs, and entrepreneurs from smaller towns and disadvantaged communities.
  • These objectives align with the broader vision of Viksit Bharat 2047.
• Way forward: Despite its achievements, sustained reforms are necessary for -
  • Improve digital accessibility and awareness among small suppliers.
  • Strengthen cybersecurity and data privacy safeguards.
  • Enhance procurement capacity at State and local government levels.
  • Ensure timely payments to vendors.
  • Expand green procurement standards and AI-enabled procurement analytics.

Conclusion:

• GeM has transformed India's public procurement system by making it transparent, competitive, technology-driven and inclusive.
• Its success demonstrates how digital governance can simultaneously improve public service delivery, promote entrepreneurship, empower MSMEs, and ensure efficient use of public resources.
• Continued innovation and wider stakeholder participation will be crucial for making GeM a global benchmark in digital public procurement and advancing the vision of Viksit Bharat 2047.