Prime Minister Modi's Mann Ki Baat Mentions Government's eMarketplace (GeM), Will Further Boost Digital Transactions

New Delhi: India's push towards a digital economy has been relentlessly advocated by the Union Government for the past few months. From demonetisation to DigiDhan Mela, several initiatives have been taken by the government to encourage digital transactions among people, and also to clamp down on corruption associated with cash based transactions. In January 2016, the Government collated recommendations of Groups of Secretaries and decided that the Directorate General of Supplies and Disposal will create a single stop Government eMarketplace (GeM), which will facilitate online procurement of goods and services required by government departments and public sector units (PSUs). The portal was officially launched in August 2016.

The GeM will be the government's very own online goods and services portal, and will supply to all departments and ministries. Like any e-commerce portal, GeM has a rich listing of products, divided under several categories. Buyers can search, compare and buy products, similar to any other e-commerce website. Any ministry or PSU can register itself at the GeM website and buy the products. The GeM portal has been designed in a way to eliminate any human involvement in the whole process, thus reducing the chances of corruption. From registration, to buying, both the buyer and seller are notified via emails and SMS, thus ensuring that both the parties are kept updated on the transaction's progress. 

Currently, several items necessary for domestic use are available at the GeM portal. From almirahs to absorbent cotton wool, from fans to rugs and mats, all items of domestic use are available at the GeM portal. Presently, transport and digitisation services are available under the services section. The GeM will provide more services such as repairing, cargo handling and event management in the future. 

Also Read: GST Amounting To Rs 10,000 Or More Only To Be Paid Via Digital Means

The cashless facility at GeM is integrated with Public Finance Management System (PFMS) and State Bank Multi Option System (SBMOS). These enable smooth cashless transactions across the portal. Direct purchase from the GeM is similar to purchasing from any e-commerce portal and can be paid for using either SBI netbanking facilities or PFMS, used by government agencies to make direct payments to beneficiary accounts. Purchases up to Rs 50,000 can be bought directly by buyers at GeM. For purchases beyond Rs 50,000, GeM offers the options of bidding, comparison or reverse auction. Buyers can bid for a product or buy a product by comparing its prices with outside markets. In a reverse auction, sellers compete within themselves to make the buyer buy the product. Prices decrease with each bid on behalf of the sellers.  

The GeM is also a conscious initiative on the Union government's part to encourage digital transactions among all ministries. The GeM will ensure all purchase of inter and intra departmental goods and services across ministries is conducted via cashless means. This helps in curbing down any ministerial corruption and leaves a trail due to the online nature of transaction, which could be tracked if necessary. Not only does the GeM ensure transparency, but is also a safe place for transactions. All suppliers are verified through Aadhar and PAN databases, along with Securities and Exchange Board of India (SEBI) empaneled credit agencies which rate these suppliers, after conducting thorough verification.

The Union Government estimates that the GeM portal could provide trade supplies worth 20 per cent of India's Gross Domestic Product (GDP), when all kinds of services and products are available by the end of 2017.