India’s Government e-Marketplace (GeM) achieves impressive growth in service procurement, with transaction values soaring from INR 8,505 crore in FY 20-21 to INR 65,957 crore in FY 22-23. The services sector’s contribution to GeM Gross Merchandise Value increases from 23% in FY 21-22 to nearly 47% in the current fiscal year, as GeM sets sights on surpassing INR 1.50 lakh crore. This success enhances procurement efficiency and transparency.
GeM’s exceptional success is credited to the active participation of prominent government buyers spanning various sectors, including leading CPSEs like Coal India Limited, NTPC Limited, Oil and Natural Gas Corporation Limited, and Bharat Petroleum Corporation Limited, who effectively utilize GeM for service procurement. Additionally, numerous states and union territories, including Gujarat, Uttar Pradesh, Delhi, Uttarakhand, and Punjab, have adopted GeM as their preferred platform for services procurement.
GeM provides a wide array of services across various categories, including:
Manpower Outsourcing Services thrived in FY 22-23, with around 40,000 contracts valued at over INR 14,000 crore.
In FY 22-23, Vehicle Hiring Services saw a substantial demand, with 30,000 contracts worth over INR 2,900 crore.
Handling, Transport & Other Mining Services received substantial orders, including approximately 175 orders from subsidiaries of Coal India Ltd., with a total order value of INR 24,558 crore.
GeM’s expanded services portfolio now includes insurance services, allowing IRDA-approved Insurance Companies to directly offer coverage san brokers and agents. Government of Gujarat recently placed a ₹2,302 Crore order for Group Mediclaim Insurance under the Pradhan Mantri Jan Arogya Yojana, benefiting approximately 62 lakh families.
GeM is facilitating the procurement of complex IT services, including core banking solutions and digital healthcare solutions, for various organizations and ministries. Central Government Health Schemes (CGHS) have placed orders worth around INR 1038 crore after empanelling chemists at various medical centers across the country.