PM Modi lauds GeM for milestone of Rs 10 lakh crore cumulative sales on 8th anniversary

New Delhi (India), August 9 (ANI): Prime Minister Narendra Modi lauded the government-owned e-marketplace (GeM) for its remarkable achievements as the platform celebrated its 8th anniversary on Friday.

Highlighting the platform’s impact on inclusive economic growth, PM Modi posted on X, “Compliments to all stakeholders of @GeM_India for completing 8 years of the platform. This platform has achieved an impressive cumulative sales of almost Rs 10 lakh crore. But most importantly, it has provided opportunities to entrepreneurs, especially those associated with SMEs, start-ups and those belonging to SC, ST and OBC communities. GeM has also made great strides in promoting women empowerment.” The Ministry of Commerce and Industry informed that the gross merchandise value (GMV) of orders on GeM reached a staggering Rs 1.24 lakh crore by the end of Q1 of FY2024-25. This reflects a quarter-on-quarter growth of over 136 per cent compared to last year’s GMV of Rs 52,670 crore.

The largest contributor to this growth was the services segment, which had a market value of over Rs 80,500 crore — a growth of 330 per cent over the same period in fiscal 2023-24.

Procurement by central ministries, including public sector enterprises (CPSEs), crossed the milestone of Rs 1 lakh crore during the period. The ministries of coal, defence and petroleum gas emerged as the largest buyers, reflecting their strategic role in strengthening the national economy through efficient management of resources.

GeM’s success is measured not only by numbers, but also by its role as a tool supporting entrepreneurs, especially those from marginalized communities.

The platform has become a key tool for micro, small and medium enterprises (SMEs), startups, and businesses belonging to SC, ST and OBC communities, as well as women entrepreneurs, providing them with unprecedented access to public procurement opportunities.

To further enhance the user experience and support sellers, GeM is set to launch the ‘GeM SAHAYAK’ programme. This initiative aims to create a nationwide network of 7,000 trained and certified accredited trainers who will help prospective and existing GeM sellers navigate the platform and maximise business opportunities. Buyers will also benefit from the services of these SAHAYAKs, particularly in terms of listing creation and other value-added services.

To make it easier to do business on GeM, the portal has significantly reduced the transaction fees charged to sellers. As per the new revenue policy, sellers and service providers will now be charged only 0.30 per cent of the order value for orders exceeding Rs 5 lakh, down from the previous 0.45 per cent.

Further, these fees will be capped at Rs 3 lakh, a drastic reduction from the earlier limit of Rs 72.50 lakh. This reduction, ranging from 33 to 96 per cent, is expected to make listings on the platform more competitive, benefiting both sellers and buyers.

In line with its ‘Vocal for Local’ initiative, GeM has launched ‘The Aabhar Collection’, a curated selection of over 120 handmade gift items and hampers across One District One Product (ODOP) and Geographical Indication (GI) categories. Priced between Rs 500 and Rs 25,000, these products are designed for use at government events and ceremonies, further promoting local artisans and their craft on a national platform.

GeM also expanded its reach through strategic partnerships and training programmes during the quarter. The portal signed a Memorandum of Understanding (MoU) with Dalit Indian Chamber of Commerce Industry (DICCI), Assam Startup Nest and North Eastern Development Finance Corporation Limited (NEDFi). Over 320 buyer and seller training sessions were conducted across the country, strengthening the user base and the platform’s potential.

In addition, the recently launched interactive and multilingual training courses have seen a great response, with over 1,172 buyers and 3,393 sellers signing up in just four months. These initiatives underscore GeM’s commitment to building a robust, inclusive and user-friendly procurement ecosystem.

Launched in 2016, GeM was conceived as a transformational e-procurement platform that could streamline and centralize government procurement processes. Over the past eight years, it has grown into an all-in-one solution for government buyers and a major marketplace for sellers across India. (ANI)