Govt eMarketplace doubles its order value to Rs 4 trillion in FY24

MSE sellers accounted for nearly 50% of the total order values on GeM, while the Ministry of Defence emerged as the top buyer in the financial year 2023-24

The Government e-Marketplace (GeM) has witnessed a remarkable surge in the order value of goods and services sold to government entities, public sector units, and ministries, reaching Rs 4 trillion in Gross Merchandise Value (GMV) during the financial year 2023-24 (FY24), up from Rs 2.01 trillion in FY23.

GeM shatters all records!

Government e Marketplace has reached a significant milestone, surpassing ₹4 Lakh Crore in GMV (Gross Merchandise Value) for the current Financial Year. This remarkable achievement underscores GeM's dedication to innovation and effectiveness in public… pic.twitter.com/9q6dn7oL9F

— GeM (@GeM_India) March 29, 2024

This exponential growth can be attributed to the increased procurement of goods and services by various government departments and enterprises.

 

According to data shared by the Ministry of Commerce and Industry, Micro and Small Enterprise (MSE) sellers contributed significantly to this growth, accounting for 49.37 per cent (Rs 1.97 trillion) of the total order value.

In terms of order volume, GeM processed a total of 6.226 million orders in FY24, up from 5.036 million in FY23, marking a growth of 23.6 per cent in the current financial year.

The Ministry of Defence (MoD) emerged as one of the top buyers on GeM, procuring goods worth Rs 1 trillion since the portal's inception in August 2016. Notably, transactions worth around Rs 45,800 crore out of the Rs 1 trillion were awarded in the current financial year alone.

GeM has facilitated the MoD in executing over 547,000 orders, ranging from the procurement of general store items to critical defence acquisitions, including missile systems.

While goods procurement remains pivotal to GeM's growth, the procurement of services has also witnessed a significant surge. Services procurement has contributed to nearly 80 per cent of the total order value transacted on GeM in February 2024. The share of services procurement in overall procurement has exceeded the 50 per cent mark in the current financial year, indicating a paradigm shift in procurement dynamics.

Services GMV surged from nearly Rs 8,500 crore in FY21 to nearly Rs 66,000 crore in FY23, reaching nearly Rs 1,82,000 crore as of February 2024. This marks an increase of nearly 176 per cent from the previous financial year.