Public Procurement for MSMEs: The Indian Pipe Manufacturers Association (IPMA) has signed a memorandum of understanding with the Government e-Marketplace (GeM), the public procurement platform of the government, for pipe manufacturers to sell goods to government buyers under public procurement.
The GeM platform took to X (formerly Twitter) to share the news. “GeM inked an MoU with Indian Pipe Manufacturers Association (IPMA), in New Delhi on August 22, 2023. This partnership aims to promote a healthy and diverse business ecosystem through the onboarding of all member sellers under the association, regardless of their size or scale, onto the platform.”
“The document facilitates the exchange of knowledge and expertise while establishing channels of direct mode of communication between both organizations,” Gem noted. The synergistic endeavours of GeM and IPMA will amplify the ease of doing business for association members by providing greater accessibility to the public procurement market, it added.
Formed in 2018, the Indian Pipe Manufacturers Association is the representative body of pipe manufacturers with more than 540 representations.
Also read: Not Maharashtra, Gujarat or Delhi, this state bought most goods from MSMEs via GeM
As per the GeM data, the marketplace grew to 71,129 primary buyers and 1,87,664 secondary buyers in the past seven years, across 11,850 product categories and 305 services categories on the platform. The order volume in the last FY crossed 50.35 lakhs, valued at over Rs 2 lakh crores. As of this financial year, the order value has crossed Rs 99,803 crore, of which 51.82 per cent of the order value is from micro and small enterprises.
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.
Earlier this year, public procurement of goods and services by central government ministries and departments had crossed Rs 4 lakh crore via GeM. While the portal took 1,771 days to reach Rs 1 lakh crore in gross merchandise value (GMV) since its launch in August 2016, the number of days taken to add another Rs 1 lakh crore GMV and cumulatively reach Rs 2 lakh crore was reduced by over 5.5x to 316 days. In comparison, Rs 3 lakh crore GMV was achieved in 234 days and Rs 4 lakh crore in 123 days on April 19, according to the data tweeted by GeM on April 20.