GeM witnesses remarkable uptick in procurement; Gross Merchandise Value hits Rs 4 trillion in FY24

This value hit Rs 4 trillion in Gross Merchandise Value (GMV) during the fiscal year 2023-24 (FY24), signifying a substantial rise from Rs 2.01 trillion recorded in FY23.

The remarkable uptick was driven by heightened procurement of goods and services by various government departments and enterprises.

Data by the Ministry of Commerce and Industry indicates a significant contribution from Micro and Small Enterprise (MSE) sellers, comprising 49.37 percent (Rs 1.97 trillion) of the overall order value.

GeM has enabled the Ministry of Defence (MoD) to process more than 547,000 orders, covering a wide spectrum from acquiring general store items to crucial defense procurements, such as missile systems.

While the procurement of goods remains critical to GeM's growth, there has been a notable rise in the procurement of services.

In February 2024, services procurement accounted for almost 80 percent of the total order value conducted on GeM.

Moreover, the proportion of services procurement in overall procurement has surpassed the 50 percent threshold in the current fiscal year, indicating a significant shift in procurement dynamics.

The Gross Merchandise Value (GMV) of services surged from approximately Rs 8,500 crore in FY21 to nearly Rs 66,000 crore in FY23 and has now reached nearly Rs 1,82,000 crore as of February 2024.

This reflects a considerable increase of almost 176 percent from the preceding financial year.