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Government e-Market (GeM) Projects Significant Growth in Services Procurement for FY24

The Government e-Market (GeM), an online platform for government procurement, is witnessing a substantial surge in the procurement of services, with expectations of reaching Rs 1.5 lakh crore in the fiscal year 2023-24. This impressive increase, as noted by GeM CEO P K Singh, reflects a significant expansion from the Rs 65,957 crore spent in 2022-23.

Top Buyers and Contributors: Various prominent entities, including Coal India, NTPC Ltd, ONGC, states like Gujarat, Uttar Pradesh, Delhi, Uttarakhand, Punjab, Nagaland, and ministries such as coal, power, defence, and finance, have emerged as leading buyers of services through GeM.

Historical Growth: Services procurement through GeM has shown remarkable growth in recent years. Starting at just Rs 3,069 crore in 2019-20, it surged to Rs 65,957 crore in FY23. The current fiscal year is anticipated to see services procurement skyrocket to Rs 1.5 lakh crore.

Key Service Categories: The services in high demand encompass a range of sectors such as manpower outsourcing, vehicle hiring, mine development and operations, handling, transport, insurance, IT, and medical services. Notably, GeM offers about 10 types of insurance services, including group mediclaim, assets, liability, motor, livestock, crop, and medical. The platform has facilitated direct engagement with insurance companies, eliminating the need for intermediaries.

Unique Services and Contributions: In addition to conventional services, GeM also witnesses growing interest in unique offerings such as leasing high-value medical equipment, market research/surveys, hiring chartered aircraft, examination services, and international logistics services.

Procurement Overview: Overall, GeM’s procurement statistics are impressive, with goods procurement reaching Rs 1.10 lakh crore and services procurement at Rs 90,000 crore. GeM caters to a vast network of government buyer organizations and sellers, encompassing over 63,000 government buyer organizations and more than 62 lakh sellers and service providers offering a diverse array of products and services.

GeM continues to play a pivotal role in enhancing transparency and efficiency in government procurement processes, ultimately benefiting both buyers and suppliers across the nation.


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