India's Government e-Marketplace (GeM) is set to become the world's largest public procurement platform, surpassing Korea's KONEPS. GeM's remarkable $50 billion turnover is enabling small businesses to participate in government tenders. Initiatives like AI-based chatbots, reduced transaction fees, and the "Aadhar collection platform" are empowering local entrepreneurs. GeM plans to introduce "sahayaks" - helpers who will assist small sellers, ensuring a sustainable support system. As GeM evolves, it stands as a beacon of hope, empowering India's small businesses to contribute to the country's economic growth.
In a remarkable stride towards economic empowerment, India's Government e-Marketplace (GeM) is poised to become the world's largest public procurement platform in the current fiscal year. This digital platform has emerged as a game-changer, revolutionizing the way government agencies and small businesses interact and collaborate.
Formerly, the Korea ON-line E-Procurement System (KONEPS) held the title of the world's biggest public procurement platform, with a staggering $85 billion in turnover last fiscal year. However, GeM's remarkable performance has set it on a trajectory to surpass KONEPS, with its own turnover of goods and services reaching a remarkable $50 billion.
"In the current fiscal year 2024-25, we will overtake KONEPS to become the world's biggest public procurement platform," proudly announced P.K. Singh, the CEO of GeM.
The platform's remarkable growth can be attributed to its inclusive and user-friendly approach. It currently boasts over 3.7 lakh buyers and an impressive 21 lakh sellers, offering a vast array of nearly 12,000 products and 320 service categories. From computers and phones to specialized service contracts, GeM has become a one-stop-shop for government procurement needs.
"The Union commerce ministry's GeM has enabled small domestic entrepreneurs to participate in government tenders from anywhere at any time, breaking the 'cartel' of established service providers," said Singh.
To further enhance the ease of doing business, GeM has introduced several customer-centric initiatives. The platform now utilizes artificial intelligence to offer a generative AI-based chatbot, ensuring prompt and efficient resolution of any query. Additionally, the transaction charges have been significantly reduced, with orders between Rs 5 lakh and Rs 10 crore seeing a charge of just 0.3% of the order value, and orders above Rs 10 crore incurring a flat fee of Rs 3 lakh.
"We are using artificial intelligence in a big way and have become the first Govt agency to have a generative AI-based chatbox to resolve any query. In a bid to improve the ease of doing business, we have slashed transaction charges," Singh explained.
The platform's vendor assessment process has also been streamlined, with a reduction in chargeable fees from sellers by up to 69% for manufacturers and 92% for traders. Additionally, the caution money deposit has been reduced from Rs 5,000 to Rs 2,000 (a 60% drop) for new sellers with a turnover up to Rs 1 crore.
In a move to further empower local businesses, GeM has launched its "Aadhar collection platform," which is "vocal for local." Furthermore, the platform is planning to introduce a training platform for "sahayaks" (helpers) who will assist small sellers in navigating the marketplace and resolving their queries.
"We saw there is a need for this kind of service. The properly trained sahayaks will not be our employees but they will provide the required help to anyone who needs the same. We will be floating the request for proposal (RFP) for this proposed scheme this month," Singh revealed.
The sahayaks will be compensated for their efforts, ensuring a sustainable support system for small businesses to thrive within the GeM ecosystem.
As India's Government e-Marketplace continues to evolve and expand, it stands as a beacon of hope for the nation's small entrepreneurs, empowering them to participate in government procurement opportunities and contribute to the country's economic growth.
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