Government e-marketplace made record procurement of Rs 3.89 lakh crore this year: Additional CEO GeM

New Delhi [India], March 20 (ANI): One of the indicators of the impact of India's economic growth is the growth seen by the Government e-Marketplace (GeM). From a modest beginning with procurement valued at Rs 422 crore in its inaugural year, GeM has surged ahead, reaching a milestone of Rs 3.89 lakh crore in the current fiscal year.
Speaking to ANI along the sidelines of the 'Startup Mahakumbh' held at 'Bharat Mandapam', Ajit B. Chavan, the Additional CEO at Government e-Marketplace (GeM), said this would not have been possible with clear direction from the top leadership.
"We started in the first year in 2016 with Rs 422 crore Gross Merchandise Value. Now we've reached Rs 3.89 lakh crore in this year. This wouldn't have happened without clear guidance and directions of topmost leadership and aptly executed by competent teams in GeM" Chavan said.
Addressing the role of government initiatives in fostering entrepreneurship, the Additional CEO underscored GeM's alignment with the vision of the Prime Minister to combat corruption, enhance transparency, and drive efficiency in public procurement.
"GeM stands for Efficiency, Transparency and Inclusion as its founding pillars. And we're very happy to inform that the progress of GeM over the seven years has been stupendous" the Additional CEO GeM said.
Reflecting on the evolution of entrepreneurial opportunities, Chavan highlighted the transformative impact of initiatives such as the Jan Dhan, Aadhaar, and Mobile (JAM) Trinity, which have ushered in a formalized economy.
"I think there has been a sea change in recent times since the inception of GeM. You've heard of JAM Trinity, that is... Jan Dhan, Aadhaar and mobile penetration which has completely changed the landscape. Now you have a lot of formal economy and that completely changes the whole prospects for all the stakeholders" he said.
"Things have decisively changed for the good for every agent or every person, every stakeholder in the entire supply chain and I think we are happy to be a part of this change. GeM has introduced a lot of sellers to the government procurement ecosystem and enabled them to be a part of the huge business opportunity GeM offers" the Additional CEO GeM added.
Public procurement accounts for a substantial portion of the government's GDP, and as the economy flourishes, stakeholders on GeM stand to benefit from enhanced market linkage and access.
"GEM is about public procurement. Largely, the ballpark figure is 10-15 per cent of the government's GDP is in public procurement. And as the economy improves, there is a larger amount of market linkage, access to markets for the players who are on the GeM. So, it goes without saying that there is a direct correlation between the growth of the country and the growth of the stakeholders on the GeM." Chavan said.
With an estimated saving ranging from 10 to 15 percent, GeM has facilitated transactions worth approximately Rs 7.8 lakh crore over the past seven years. This translates to substantial savings of Rs 70,000 to 80,000 crores, which hold immense potential for a developing economy like India.
The Additional CEO GeM expressed optimism about India's trajectory over the next decade, envisioning the nation's transformation into a developed economy by 2047.
"I don't know exact numbers 10 years ahead. But we are wedded to the concept that India becomes a developed world and look forward to it. By 2047, we should be a developed world and whatever it takes to take us there we, as part of GeM, will do our bit" he said.
As GeM continues to evolve, it stands poised to drive substantial socio-economic impact, empowering entrepreneurs and propelling India towards unprecedented growth and prosperity. (ANI)