Best Fast Dropshipping Service & Business India

New Delhi: The procurement of goods and services from the government portal GeM will cross Rs 4 lakh crore by the end of this fiscal due to higher buying activities by various ministries and departments, a senior government official said on Monday. The Government e-Market (GeM) portal was launched on August 9, 2016, for online purchases of goods and services by all central government ministries and departments.

“As of today, the procurement has crossed Rs 3 lakh crore and going by the trend, the procurement this fiscal will reach Rs 4 lakh crore,” GeM CEO P K Singh told reporters here.

In 2021-22, the procurement value stood at Rs 1.06 lakh crore and it crossed Rs 2 lakh crore last year.

Singh said the share of Central Public Sector Enterprises (CPSEs) such as Coal India in the total buying of goods and services is increasing at a healthy rate.

More than 245 CPSEs, including Coal India, SAIL, NTPC, and SBI, are participating in the process.

GeM has over 63,000 government buyer organisations and over 62 lakh sellers and service providers offering a wide range of products and services.

Currently, government departments, ministries, public sector units, state governments, and central armed police forces are allowed to carry out transactions through this portal.

The portal provides a wide range of products from office stationery to vehicles.

Automobiles, computers and office furniture are some of the major product categories.

Services, including transportation, logistics, waste management, webcasting and analytical, are listed on the portal.

South Korea’s KONEPS is the largest such platform in the world. GeM stands at the third position after Singapore’s GeBIZ.

States/Union Territories such as Uttar Pradesh, Gujarat, Maharashtra, Delhi, Madhya Pradesh, Jammu & Kashmir, Odisha, Bihar, Assam, and Uttarakhand have placed significant procurement orders in the current fiscal.

“GeM’s expansion into the services sector has played a pivotal role in driving its accelerated adoption. Services sector contribution in the total procurement has increased from 23 per cent in 2021-22 to 50 per cent this fiscal,” Singh said.

He added that procurement of services from the portal has jumped from Rs 66,000 crore in 2022-23 to Rs 1.30 lakh crore so far.

“In this financial year, concerted efforts were made to reach out to various government bodies and maximise their participation in public procurement process through GeM.

“While central entities have contributed to 82 per cent of the current GMV (Gross Merchandise Value), increased engagement from states has propelled the platform’s growth,” Singh said.

States have procured goods and services worth Rs 49,302 crore so far this fiscal.

Talking about increased usage of the portal by northeastern states, he said Tripura has procured goods and services worth Rs 200 core so far this year.

Cumulatively, procurement worth over Rs 7 lakh crore has been done from the platform, which has led to savings of about Rs 70,000 crore to the government exchequer, Singh said.

  • Published On Feb 12, 2024 at 06:51 PM IST

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis.

Download ETRetail App

  • Get Realtime updates
  • Save your favourite articles

Scan to download App

Best Fast Dropshipping Service & Business India

Source link

Leave a Reply