Digital Government in India
GeM: Buying for the Government Online
How the Government e-Marketplace lets public agencies buy goods and services online, what it has saved, and how it opened government business to small firms.
Governments buy enormous amounts of goods and services, from pens and computers to vehicles and cleaning services. Traditional procurement was slow, opaque and prone to corruption.
GeM
The Government e-Marketplace (GeM), launched in 2016, is an online platform where government departments, public sector companies and agencies buy goods and services.
How it works
- Sellers register and list products and services.
- Buyers compare prices and specifications.
- Purchases can be made directly, through reverse auctions or bidding.
- Payments and records are tracked online.
Growth
GeM’s annual transaction value grew rapidly to several lakh crore rupees, making it one of the largest public procurement platforms in the world.
Benefits
- Transparency: open listings and records.
- Lower prices: studies and government reports suggested significant savings compared with earlier procurement.
- Speed: faster purchases.
- Access for small firms: MSMEs, women-owned businesses and startups can sell to government more easily.
Challenges
- Quality concerns with some sellers.
- Collusion or manipulation in some bids.
- Complex services are harder to buy online.
Economics
Better procurement means more value for taxpayers’ money and fairer competition for businesses.
A women-led furniture business in a small town registers on GeM and wins orders from government schools in other states, something that would have been nearly impossible under old tender systems.
GeM increases transparency, but collusion and quality problems can still occur.
- GeM, launched in 2016, is India's online government procurement platform.
- It grew to several lakh crore rupees in annual transactions.
- It increases transparency, lowers prices and opens access to small firms.
- Quality and collusion remain concerns.
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