Government e Marketplace (GeM) plans to onboard 1,00,000 startups on its online platform, which will enable new business entrants to participate in eligible public procurement bids regardless of their inability to meet the accustomed norms related to turnover and minimum years of experience, a senior official said.
GeM is India’s public procurement platform. Ajit B Chavan, the additional Chief Executive Officer of GeM, stated, “Our target is to have all the startups of DPIIT recognized, which is either a service to offer or a product to sell to the government on the GeM platform.
The Department for Promotion of Industry and Internal Trade has recognized approximately 26,500 startups registered on GeM as sellers. On June 30, the Department for Promotion of Industry and Internal Trade (DPIIT) recognised over 1,40,000 startups. This online platform allows buyers to relax startup eligibility criteria, including the final position, past experience and minimum experience.
How are DPIIT-recognized Startups Registered on the GeM?
On the GeM portal, around 26,500 DPIIT-recognized startups are registered as sellers. The target is to have all the DPIIT-recognized startups, in that condition, which either have a product to sell or a service to give out hire to the government, on the GeM platform, Additional Chief Executive Officer of GeM Ajit B Chavan told DH.
The number of startups recognized by DPIIT stood at over 1 lakh 40 thousand. Startups usually cannot qualify for government tenders’ eligibility criteria, such as financial position, prior experience, and minimum experience level. Ajit B Chavan said that for most of these criteria, GeM buyers have the option to relax the startups’ conditions.
Additionally, it’s beneficial for both. It improves the government’s choices, and startups also get business opportunities. It said that “startups are inherently more innovative and can provide more efficient and cheaper services.”
Since its inception in 2016, GeM has facilitated public procurements worth Rs. 10,00,000 Crore. It has also emerged as the world’s second-largest government procurement platform, only behind South Korea’s Korea online e-procurement System.
GeM is a Section 8 company set up under the administrative control of the Department of Commerce. It has recently been trying to reduce transaction charges that will benefit MSMEs and startups. Now, the platform does not levy any transaction charge on orders valued up to Rs. 10,00,000. This means that MSMEs and most startups would not need to pay any transaction charge to get business through the GeM portal.
Chavan reported that MSEs listed on the GeM platform had fulfilled around 39 percent of the total value awarded through the GeM platform. DPIIT-recognized startups have conducted business worth Rs.29 thousand crore through the GeM portal.
MSME registration is mandatory in India for any business to start functioning legally. The registration process is paperless and free of cost. It is mainly based on self-declaration and differentiated into two main categories: manufacturing and service enterprises.
Launch your business easily through seamless MSME Registration and join the GeM portal to get into exclusive government contracts designed just for you.
Why did GeM Emerge as a Crucial Part?
Ajit B Chavan said that GeM has emerged as a crucial lever in supporting the growth of homegrown businesses and fostering economic self-reliance. He added, “By encouraging local innovation and prioritising domestic suppliers, GeM acts as a crucial catalyst for India’s industrial development, global competitiveness, and employment generation.”
According to Ajit, during the financial year of 2020-21, almost 39% of bids floated by the central government entities on this portal of GeM were embarked with a “Make in India” preference. In the Final Year 2024-25 (as of 25 September 2024), the percentage has exactly doubled to nearly 81%, clearly indicating a marked improvement in adopting the government’s ‘Make in India’ policy on GeM, he said.
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Govt Procurement Portal GeM Eyes to Onboard 1 Lakh Startups
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A Brief Outlook of the GeM Portal
GeM Portal, short for Government e Marketplace, is a one-stop online platform for government procurement in India. The Ministry of Commerce and Industry launched this initiative on 9 August 2016.
The three key pillars of GeM are transparency, efficiency, and inclusivity, which ensure that business in the government e Marketplace is quick and easy. Public procurement has always been an essential part of government activities.
GeM registration authorizes dealers, service providers, and manufacturers to enter an interactive online platform to directly sell their products and services to buyers from government departments, organizations, and PSUs.
However, with GeM Registration, you can transform your DPIIT-recognized startup into a government supplier and tap into a world of profitable contracts with zero transaction fees.
Know the Importance of GeM
GeM aims to enhance public procurement’s efficiency, transparency, and speed. It also provides e-bidding tools, reverse e-auction, and demand aggregation to facilitate government users and ensure they get the best value for their money.
GeM Promoting “Make in India”
The GeM portal is boosting the “Make in India” campaign. Also, 39% of bids on GeM were for Make in India products in 2020-21; presently, it has reached 81%. This implies that this increase in government buyers prefers local products.
Since its inception on 9 August 2016, GeM has logged over Rs 10 lakh crore worth of purchases. In the world, it is second only to South Korea’s KONEPS among government procurement platforms.
GeM perfectly fits into India’s agenda of becoming more competitive in the global market. However, supporting startups and SMEs aligns with the country’s large goals of growth and self-reliance.
What are the Benefits of Startups on GeM Portal?
The benefits of startups on GeM portal:
· Requirement Assumptions
Startups are immune from stringent selection criteria like turnover requirements, prior experience, etc.
· Pilot Projects
The opportunity to work on government trial orders can make them more willing to try a new project.
· Feedback Device
On this platform, buyers can also rate the specific products & services.
· Flexibility
It allows for more flexibility in selecting products and services that must be original to be published on the platform.
GeM Portal Hopes for More Startups Onboard for a Launch Soon
GeM, the government’s procurement portal, is looking to encourage more startups and SMEs to list themselves as sellers. It offers market linkages and collateral-free loans up to Rs. 10 Lakh to startups and entrepreneurs at interest rates of up to 10 %, which will be approved within ten minutes. He also encouraged startups to leverage GeM’s ‘Startup Runway’ initiative, which gives startups direct visibility with the buyers of the public procurement portal.
Impact of GeM on the Startup Mahakumbh
Since nothing of this scale has ever been organized, Startup Mahakumbh can be a historic event. In this event, especially, engage very actively. Only if people come together, are and interact with each other is the fire of ideas ignited. Exactly, this is the idea to be at Startup Mahakumbh.
GeM will showcase its overarching registration and onboarding process to the women-led MSMEs and participating startups during the event. Its Interactive Multilingual Learning Management, which helps sellers navigate the platform effortlessly, is an innovative solution.
It will also allow MSMEs to connect with GeM representatives for queries and additional clarifications. In a panel discussion, GeM CEO Shri Singh will address the participants on “The role of startups in realizing the vision of Viksit Bharat.” Several other GeM officials will also hold masterclasses throughout the event to engage participating startups in meaningful discourse.
Conclusion
The Government e Marketplace (GeM) has transformed public procurement in India. It aims to promote efficiency, transparency, and inclusiveness in the procurement process for government agencies and public sector undertakings. Additionally, it simplifies the purchasing process and allows us to offer a wide range of products and services. It especially helps to empower SMEs to expand their market reach.
Dive into the future of public procurement with GeM. Visit our website to join now https://corpbiz.io/ and let your startup shine in the government marketplace.
Frequently Asked Questions
What is GeM?
Government e-Marketplace is an online platform for the public procurement of usual goods and services by the public and central departments of the government. GeM SPV is an authority responsible for managing, developing, and maintaining the GeM platform.
What is the full form of GeM in procurement?
GeM (Government e Marketplace) | National Public Procurement Portal, Government of India.
What is the GeM platform?
GeM is a paperless, cashless, and contactless online marketplace that replaced the Directorate General of Supplies and Disposals (DGS&D) in 2016. Since its inception, GeM has specifically improved transparency and visibility in public procurement.
Can startups participate in government tenders?
Now, startups can register on the Central Public Procurement Portal of the Government of India (CPPP) and become preferred bidders in public orders. At https://eprocure.gov.in, they can also get exemptions from the prior turnover, prior experience, and earnest money deposit requirements.
How do I do procurement through the GeM portal?
Registration is required to start procurement from the GeM portal. Two types of registration are needed: primary User and Secondary User. Subsequently, the Primary User registers the organization and is also responsible for registering secondary users who will perform the tendering function.
How do you win government tenders on the GeM portal?
Firstly, it’s better to do research on your buyer, their needs, and how they function. This can help you fill in details and increase your chances of winning the contract. Additionally, compare your capabilities with competitors and quickly check who your likely competitors are.
What is the GeM portal?
In India, the GeM (or e Marketplace) is an online platform for public procurement. The government of India launched this initiative on 9 August 2016 through the Ministry of Commerce and Industry to create a transparent and open procurement platform for government buyers.
Is the GeM Portal successful?
By creating market access, GeM has successfully broken down the cartel of renowned and established service providers for small domestic entrepreneurs, paving the way for them to participate in government tenders anytime from anywhere.
Who controls the GeM portal?
The CEO (Chief Executive Officer) of GeM (Government e Marketplace), Government of India, is Prashant Kumar Singh. Also, he is a bureaucrat of the Indian Administrative Service of 1993.
What are the types of procurement in GeM?
The three buying modes are Direct Purchase with L1 and e-bid/RA.
What is Startup in the GeM portal?
It is a corner on GeM that allows lean and agile startups to reach out to government buyers by offering unique products and services in process, design, concept, and functionality through the startup runway corner.
Why is GeM registration essential?
GeM registration is essential for the following:
– GeM provides a wide and interactive platform for small dealers, manufacturers and service providers.
– It provides simple and easy online procurement for goods & services by many government sectors.
– It’s a dynamic market, so the prices of goods and services change according to consumers' changing needs and market conditions.
– It is a secure platform, and all the documents are e-signed by the sellers and buyers.
– Also, it provides modern tools like online reverse auctions, e-bidding, and demand aggregation to provide government users with the best value for the money.
– For buyers and sellers, it has a user-friendly interface.
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