In recent years, the Government of India has been employing numerous steps when it comes to digitization of various sectors, including the procurement sector.
One such great initiative is the Government e-marketplace platform or GeM portal – a one stop shop for different goods & services procured by government organizations throughout the country.
In this piece, we will help you understand what is the GeM and how the portal is useful for in India!
What is the GeM?
The Government e-marketplace, or GeM, was launched by the Ministry of Commerce and Industry on August 9, 2016. It has emerged as a game changer when it comes to public procurement in India. What is truly impressive is the kind of impact it has had on small and medium-sized enterprises (SMEs) and startups in India.
The platform has simplified procurement for government organizations who can now locate suppliers of services and products via an interactive online platform.
Similarly, the platform provides a seamless opportunity for manufacturers, small business owners and service providers to interact with government organizations who are willing to procure their products.
SMEs often face difficulties obtaining government tenders owing to extensive paperwork. However, with this portal, they get an opportunity to showcase their products and services to a wide range of government organizations.
The objective of launching this platform was to establish a transparent portal for the buyers and sellers to carry out procurement activities fairly.
GeM is open to all public sector undertakings, government departments, among other organizations. As of February 1, 2023, the GeM portal has achieved a staggering 1.5 lakh crore of GMV in FY 2023.
How The GeM Portal Has Made It Easy For Small Businesses
In the beginning, GeM was set up to assist Government officials to purchase everyday items like heaters, writing equipment etc. Now, it supports all Government purchases and public procurement by Government agencies. If you’re wondering why GeM, read on!
Government officials used to face a difficult time keeping track of numerous manufacturers and producers. With the GeM portal, the procurement processes have become more convenient.
Here are several other ways how it has benefitted MSMEs.
- Reduced multiple levels of verification and decision-making, leading to reductions in lead time in procurement process
- For independent MSMEs, attractive possibilities have opened up, like prompt online payment, as intermediaries have been eliminated
- Wider market access for MSMEs, thus expanding potential suppliers and opening possibilities of reaching a broader customer base
- Secure employment and create more jobs for MSMEs, thereby supporting growth of MSME sector
Benefits of GeM
In addition to making government procurement more transparent across all sectors, here are some other benefits of the GeM portal in India.
- Highly secure: GeM is an absolutely secure platform that runs rigorous checks. The Government authorizes and verifies the documents of all suppliers on the platform.
- Fully automated system: The development of a fully automated system helps enhance efficiency and accuracy in operations. All of this has been possible with advancements in technology.
- Excellent value for money: With average prices lowered by 15 to 20% and up to 56% in some cases, GeM offers great value for money.
- No registration fee: Businesses can register on the GeM platform free of charge. For registration on GeM portal, businesses need to fill up and submit a simple online registration form, making it accessible to businesses of all sizes.
- Inclusive opportunities: GeM allows MSMEs to register, bid and receive preferences in line with relevant procurement policies. Also know how to register as MSME in India.
Registration on GeM Portal
Read on to know the GeM registration online process for MSMEs.
Step 1: Create your seller account on the GeM portal.
Step 2: Update organization profile which includes company details, PAN validation, office location, bank account details, etc.
Step 3: Apply for vendor assessment on GeM to get the original equipment manufacturer (OEM) certificate.
Step 4: After becoming an OEM on GeM, vendors can start to list brands in their respective categories of products and services.
Step 5: After brand listing, list your products on the GeM marketplace.
Step 6: Participate in bids, interact with buyers, and accept online orders on GeM. It’s that simple!
Documents Required For GeM Registration Online
Some of the mandatory documents required for registering on GeM portal are as follows:
- PAN Card
- MSME certificate or Udyog Aadhaar (for businesses who haven’t been registered as MSMEs yet)
- GST registration certificate
- Mobile No and Email ID
- Canceled cheque
- Other supporting documents like product list, etc, if required
How MSMEs Can Register On GeM Portal Via Udyam Registration
Read on to know the steps for MSMEs to register on the GeM portal via Udyam!
Step 1:
Visit udyamregistration.gov.in. and click on ”For new entrepreneurs who are not registered yet as MSME or those with EM-II.” In case you want to transition from UAM, select ‘For those already having registration as UAM And If you are new than register on Udyam.’
Step 2:
As a next step, enter your Aadhaar Number for GeM login and click on validate it with an OTP. This is for Aadhaar verification with the help of OTP.
Remember that Aadhaar verification varies for different types of organizations. Proprietorship firms, partnerships, LLP etc have specific Aadhaar verification criteria.
Step 3:
Enter the required OTP and click on verification. Once you have logged in GeM and Aadhaar verification process is complete, enter your PAN details for validation. Once verified, click on continue. Thereafter, progress to the detailed information section, which comprises 27 pointers seeking different information about your business.
Step 4:
Point Number 22 would check your interest in registering on the GeM portal, wherein, you will have to click on the Yes option.
Step 5:
At this point, you can also opt for a simultaneous registration process on other Government portals for MSMEs such as NSIC B2B.
Lastly, click on submit to receive the final OTP after filling the form. After successful registration, you will receive a confirmation message on your registered EMail ID/ phone number.
Takeaway
The success of GeM can be tracked with these impressive statistics – As of Feb 2023, 13,18,192 sellers registered in the Government e-Marketplace (GeM) to sell their products directly to various Government departments and organizations.
Furthermore, The government expanded the scope of GeM to include services such as transportation, logistics, and consulting. To conclude, the GeM portal is a great example on how technology can revolutionize the public procurement process in India.
Over the past few years, GeM has legit transformed the procurement landscape, and going forward, it strives to continue making a significant impact in this direction.
FAQs
What is GeM portal?
The GEM Portal, an abbreviation for Government e-Marketplace, stands as India’s premier online platform for government procurement.
Initiated in 2016 under the auspices of the Ministry of Commerce and Industry, its primary objective lies in fostering transparency, efficiency, and inclusivity within the procurement operations of government entities and public sector undertakings.
How can a startup register on GeM?
When registering on GeM, you have the option to designate your organization as a startup. To do so, you’ll be prompted to input your DIPP (Department for Promotion of Industry and Internal Trade) number along with the mobile number associated with it.
What are the benefits of registering as MSME?
All government purchasers are required to procure a specific percentage of goods from Micro, Small, and Medium Enterprises (MSMEs) annually. Therefore, being registered as an MSME grants you the advantage of increased sales opportunities within the government sector.