Public Procurement from MSMEs: Government e-Marketplace, the public procurement platform of the Government of India has crossed Rs 1 lakh crore in gross merchandise value (GMV) within 145 days of the current financial year 2023-24 in comparison to 243 days taken in the previous financial year to achieve the Rs 1 lakh crore GMV milestone, according to the Commerce Ministry. Moreover, the average GMV per day also grew from Rs 412 crore per day in FY23 to Rs 690 crore per day in FY24, indicating an increase in procurement by government departments and public enterprises from MSMEs via GeM.

At the time of filing this report, GeM had a GMV of Rs 1.04 lakh crore in the current FY. Since its launch in 2016, the portal has registered GMV of more than Rs 4.91 lakh crore and processed over 1.67 crore orders. In FY23, the portal recorded a GMV of Rs 2.01 lakh crore. 

The first Rs 1-lakh-crore procurement was achieved by GeM in four-and-a-half years while the second Rs 1 lakh crore mark was achieved in the financial year 2021-22 itself. In 2017, it achieved business of about Rs 400 crore and in the second year, it reported about Rs 5,800 crore business. It has from around Rs 35,000 crore two years ago and tripled last year to Rs 1.06 lakh crore.

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As per the GeM data, the marketplace grew to 71,209 primary buyers and 1,87,809 secondary buyers in the past seven years, across 11,857 product categories and 306 services categories on the platform. The order value from the micro and small sellers was 51.57 per cent. Considering the similar marketplaces, South Korea’s KONEPS is the largest such platform in the world followed by Singapore’s GeBIZ while GeM stands in third position.

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According to a government mandate, government offices, ministries, departments, PSUs and others have to procure a minimum of 25 per cent of their annual procurement from micro and small enterprises.

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