GeM Services Procurement Soars to Rs 1.82 Lakh Crore in 2023-24

By siliconindia  |  Friday, 23 February 2024, 06:21:37 PM IST

GeM Services Procurement Soars to Rs 1.82 Lakh Crore in 2023-24
Government e-Marketplace (GeM) has witnessed a remarkable surge in services procurement, reaching Rs 1,82,000 crore during the current fiscal year, marking a substantial 176% increase from the previous year's Rs 66,000 crore, according to data released by the Commerce Ministry. The data reveals that services procurement now surpasses product procurement in a financial year, indicating a growing preference for services by various government buyers.
In February 2024, services procurement accounted for nearly 80% of the total order value on GeM, with the share of service procurement exceeding 50% for the entire fiscal year. Notably, bids from South Eastern Coalfield Limited, a subsidiary of COAL India Limited, worth almost Rs 40,000 crore, significantly contributed to this surge in service procurement.
GeM CEO P K Singh attributes this achievement to the platform's digital capabilities, transforming it into a comprehensive solution for the procurement of diverse government services. The expansion of service offerings on GeM has played a pivotal role in boosting the Gross Merchandise Value (GMV) of the platform.
In the current fiscal year, GeM has processed 457 orders, amounting to Rs 4,036 crore, for nine types of insurance services. The government of Gujarat, for instance, procured Group Mediclaim Insurance Services worth Rs 2,302 crore under Pradhan Mantri Jan Arogya Yojana.
GeM's innovative services, such as Local Chemist Empanelment, have facilitated substantial discounts on medicines through e-bidding, leading to active participation from government health schemes and state health departments.
Services procurement on GeM has also played a crucial role in supporting social welfare initiatives like Jal Jeevan Mission and POSHAN 2.0. Notably, GeM has established separate categories for hiring sanitation services, contributing to the Swachh Bharat vision.
This unprecedented growth in services procurement on GeM underscores the increasing recognition of services as a strategic asset and emphasizes the importance of a robust procurement infrastructure in streamlining public procurement processes. The platform's scalability and adaptability are highlighted as it continues to play a pivotal role in India's economic growth since its establishment in 2016.

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