The Government e-Marketplace (GeM) is an online platform established by the Government of India to facilitate procurement of goods and services by various government departments, organizations, and public sector undertakings. One of the significant roles of GeM portal is to promote competition and reduce prices in government procurement.
By providing a single platform for buyers and sellers, GeM portal has increased transparency and efficiency in the procurement process. This has created a level playing field for all sellers, including small and medium enterprises (SMEs), to participate in government procurement. The platform allows sellers to bid for contracts, and buyers can choose the most competitive bid.
Moreover, GeM portal has eliminated the need for intermediaries, which has reduced the cost of procurement. The platform also allows buyers to compare prices offered by different sellers for the same product or service, which helps them make informed decisions and choose the best price.
GeM portal has also introduced the concept of dynamic pricing, where prices for goods and services are continuously updated based on market demand and supply. This ensures that prices remain competitive and fair, and buyers get the best value for their money.
Overall, GeM portal has played a significant role in promoting competition and reducing prices in government procurement. The platform has created a level playing field for all sellers, encouraged transparency, and eliminated intermediaries. As a result, it has reduced the cost of procurement and promoted the use of digital technology in government procurement, which has led to efficiency gains and cost savings for the government.
GeM portaland the impact on the overall economy
The Government e-Marketplace (GeM) has had a significant impact on the overall economy of India since its launch in 2016. Here are some of the ways in which GeM portal has contributed to the country’s economic growth:
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Promotion of MSMEs
GeM portal has facilitated the participation of micro, small, and medium enterprises (MSMEs) in government procurement. By providing a level playing field and eliminating intermediaries, GeM portal has made it easier for MSMEs to compete for contracts, which has contributed to their growth and expansion.
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Cost savings for the government
GeM portal has reduced the cost of procurement for the government by eliminating intermediaries and promoting transparency and competition. This has led to significant cost savings, which can be used for other developmental activities.
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Increased efficiency and speed
GeM portal has streamlined the procurement process by introducing digital technology and reducing paperwork. This has led to faster procurement times and improved efficiency in government procurement.
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Promotion of Make in India
GeM portal has encouraged the use of domestically manufactured products and services by promoting the Make in India initiative. This has led to increased demand for locally produced goods and services, which has contributed to the growth of the manufacturing sector in the country.
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Reduction of corruption
GeM portal has reduced the scope for corruption in government procurement by promoting transparency and competition. This has led to a more efficient and fair procurement process, which has enhanced the credibility of the government.
Overall, GeM portal has had a positive impact on the overall economy of India. It has contributed to the growth of MSMEs, reduced the cost of procurement, increased efficiency, promoted Make in India, and reduced corruption. As GeM portal continues to expand and improve, it is likely to have an even greater impact on the country’s economic growth and development.
Integration of GeM portal with other government systems and processes
The Government e-Marketplace (GeM) is designed to integrate with other government systems and processes, which has led to increased efficiency and transparency in government procurement. Here are some of the ways in which GeM portal has been integrated with other government systems and processes:
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Integration with Government e-Payment Gateway (GePG)
GeM portal is integrated with the GePG to enable online payment for purchases made on the platform. This integration has reduced the time taken for payment processing and has made the payment process more transparent.
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Integration with Public Financial Management System (PFMS)
GeM portalis integrated with the PFMS to enable real-time tracking of payments made to vendors. This integration has improved the efficiency of payment processing and has reduced delays in payments
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Integration with GST Network (GSTN)
GeM portal is integrated with the GSTN to enable automatic calculation of taxes and generation of invoices. This integration has reduced errors in tax calculation and has made the invoicing process more streamlined.
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Integration with e-Sign
GeM portal is integrated with the e-Sign facility to enable digital signing of contracts and other documents. This integration has eliminated the need for physical signatures and has reduced paperwork.
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Integration with Central Public Procurement Portal (CPPP)
GeM portal is integrated with the CPPP to enable seamless transfer of procurement data between the two platforms. This integration has enabled greater transparency and efficiency in government procurement.
Suggested read – GeM full form
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The integration of GeM portal with other government systems and processes has led to increased efficiency, transparency, and accuracy in government procurement. It has also reduced paperwork and processing time, which has led to significant cost savings for the government. As GeM portal continues to expand and improve, it is likely to be further integrated with other government systems and processes, leading to even greater efficiency gains and cost savings.