Ease of Doing Business for MSMEs: The annual procurement target for government buyers from micro and small sellers (MSEs) was revised in 2018 to 25 per cent from earlier 20 per cent of their total annual purchases.
Ease of Doing Business for MSMEs: The number of orders processed through the government’s public procurement portal Government eMarketplace (GeM) has neared the 1-crore mark in 5.5 years, official data from the portal showed. Launched in August 2016 to speed up and make the government procurement process transparent, GeM had processed 91.83 lakh orders worth Rs 1.96 lakh crore from 38.40 lakh registered sellers for 58,231 government buyers including public sector units and departments across various ministries so far.
The platform recorded 64 per cent growth in order volume in the past 12 months along with a 130 per cent jump in transaction value. Over 55.8 lakh orders worth around Rs 85k crore were processed in February last year. Likewise, the seller count was also up by over 200 per cent from 10.99 lakh. Buyer count too had increased 14.8 per cent from 50,709 in February 2021. Currently, more than 47 lakh products and 1.39 lakh service offerings are available on the GeM portal. Out of the total seller count, 7.53 lakh are micro and small sellers that have a 56 per cent share in the portal’s order value.
The growth in the number of orders processed has come on the back of a jump in buyer and seller count even as the government has been urging public sector enterprises to buy more from MSMEs. The annual procurement target for government buyers from micro and small sellers (MSEs) was revised in 2018 to 25 per cent from earlier 20 per cent of their total annual purchases. The 25 per cent procurement included a 3 per cent target from women-owned MSEs and 4 per cent from SC/ST MSEs.
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On the seller front, the Department of Public Enterprises in an Office Memorandum in July 2021 had asked all ministries and departments to direct their central public sector enterprises (CPSEs) to register them and their authorised resellers as sellers on GeM. Moreover, the government had linked the new MSME registration portal Udyam, which was launched in June 2020, with the GeM portal. Hence, not all GeM sellers are transacting currently.
“Most of these new registrations are because of integration with Udyam portal since last year. So, whosoever is coming onto the Udyam portal is directly put onto the GeM portal as well. Hence, not all sellers, who opt for simultaneous GeM registration, might be selling on the marketplace,” Prashant Kumar Singh, CEO, GeM had told Financial Express Online. GeM has been looking to integrate India Post for shipment of orders across the country apart from integration with Indian Railways and panchayats to cater to their procurement needs as well.
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