In a recent webinar, GeM consultant Mitisha Hemani delved into a topic that is pivotal in shaping the future of procurement and governance. The Government e-Marketplace, or GeM, revolutionised how seamlessly government procurements can be obtained at your fingertips through the GeM portal.
A cornerstone of GeM's success is its commitment to inclusivity, particularly in supporting micro and small enterprises (MSEs). Over 9.35 lakh MSEs are now registered on the platform, having received orders worth more than Rs 4.12 lakh crore, which accounts for 46.53 per cent of GeM's cumulative GMV (Gross Merchandise Value).
This substantial participation helps in empowering small businesses and assimilating them into the national procurement ecosystem. Women entrepreneurs have also made significant strides on GeM. As of May 31, 2024, 1.59 lakh women-led MSEs have fulfilled more than 14.74 lakh orders valued at Rs 33,481 crore. The platform has supported over 24,678 start-ups, which have collectively processed orders amounting to more than Rs 25,420 crore in GMV.
The various processes through which business happens is B2B – Business to Business like Amazon, B2C Business to Consumer companies like supermarkets, B2G – Business to Government where a company sells products and services directly to the government agency, for example, ammunition manufacturer sells directly to the Indian army and lastly, G2B – Government to Business through government bids, tenders and contracts.
GeM portal is not just for the big entrepreneurs, it is also for small entrepreneurs and homepreneurs. The government/PSUs have an annual target of 25% for MSE (Micro and Small Entrepreneurs) with a sub target of 4% for SC/ST entrepreneurs and 3% for women entrepreneurs. GeM portal also give entrepreneurs a platform to sell their products globally through CPP (Central Public Portal) that is integrated through the GeM portal. Businesses may also form a JV (Joint Venture) with a local firm in international tenders which are generally very lucrative.
The portal is hassle-free in its functionality, but certain technicalities have to be complied with before on-boarding. 29 States/UTs have signed MOU with GeM for procurement, showing the wide footprint the portal enjoys across the country. The procedure for on-boarding requires you to register and create your seller profile – any wrong information and the portal declines to accept the information as it is integrated with Aadhar, income tax and other related portals. Once all information is correctly verified, profile is created and the requisite caution money can be deposited (MSME women entrepreneurs are exempted from caution money).
Also, various banks are associated with the GeM Sahay app which provides collateral free loans against your purchase order. You have access to national procurement market where buyers across the country can view and place orders for your products/services. Every State has its own e procurement portal which is integrated with the GeM portal. Procurement on the portal is cashless, paperless and contactless with the entire process from issuing invoices to making payment being online. GeM works on GFR (General Financial Rules) having a technical and a financial bid and tenders are awarded to the lowest quotes. It ensures easy registration, quick creation of product catalogue, online bidding and collaboration with buyers.
GeM is increasingly popular because of rich listing of products and services (product categories 11881), integrated payment system (order value Rs 920181crore) and multiple procurement modes – direct purchase/bid/reverse auction. Seller ratings are awarded based on coverage, timely delivery, quality and reliability and buyer categories are red, orange and green – with the seller having the choice to reject any category unacceptable to him.
Categories include Saras collection of exquisitely crafted handicrafts from self-help groups and ruralpreneurs; start-ups in AI and robotics, agriculture tech, new foods, big data analytics, block chain, consumer, home electronics; Abhara collection presenting artefacts from Khadi and State emporiums; Indian Handlooms for textile items and a separate category for millet items. In Womaniya on GeM, women entrepreneurs have generated tremendous business in handicrafts, accessories, home décor, furnishings, food products and the like. 446 ODOP (one district one product) categories are also added on the portal making procurement of local produce easier than ever. The portal also provides for an online grievance redressal mechanism for quick resolution through Incident Management Policy. Tips for successful tendering include futuristic planning, building partnerships and collaborations with other businesses, evaluating past experiences, improvising on the proposals and staying updated on the latest industry news and opportunities; to make the entire GeM experience a productive one.
