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Key Points

GeM has smashed through the Rs 15.6 lakh crore barrier in cumulative transactions, showing incredible growth in India's digital procurement space. The platform is actually outperforming expectations, with MSME participation reaching nearly 45% of government procurement against a 25% target. They're working on some really innovative features like purchase order financing that will help small businesses get credit much earlier in the process. What's really exciting is how GeM is evolving from just being a marketplace to becoming a true procurement assistant for both buyers and sellers.

Key Points: GeM Hits Rs 15.6 Lakh Crore GMV as CEO Mihir Kumar Hails MSME Push

  • GeM surpasses Rs 15.6 lakh crore cumulative Gross Merchandise Value milestone
  • MSME participation exceeds targets with 45% of government procurement share
  • Platform developing purchase order financing to help MSMEs access early credit
  • GeM transforming from facilitator to procurement assistant with improved UI/UX
  • RBI support continues through priority sector lending for MSME vertical
  • CEO emphasizes making MSMEs future-ready through continuous handholding initiatives
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GeM breaks Rs 15.6 lakh crore barrier; CEO Mihir Kumar hails MSME push

GeM achieves record Rs 15.6 lakh crore GMV with MSMEs driving 45% of government procurement, CEO reveals new purchase order financing model for small businesses

"We are close to touching 45% against a target of 25% of GMV from public sector - Mihir Kumar, GeM CEO"

By Kaushal Verma, New Delhi, October 7

Government's e-Marketplace (GeM) has achieved a record milestone, surpassing Rs 15.6 lakh crore in cumulative Gross Merchandise Value, a testament to its rapid expansion and the increasing participation of MSMEs and public sector entities in India's digital procurement ecosystem.

Speaking with ANI, GeM CEO Mihir Kumar on the sidelines of the 11th FICCI-CMSME Summit in New Delhi said, "Yes, 15.6 lakh crore, more than that. So we are very happy that if I can say one statistic which is very heartening and very close to my heart, on the inclusivity side, against a target of 25% of the GMV which public sector and government departments should achieve, we are close to touching 45%."

Kumar said that the platform is exceeding the expectations that were set by the environment. He highlighted that MSMEs remain central to GeM's expansion strategy, with continued engagement aimed at strengthening their participation.

"Obviously, we keep on discussing how we can improve the footprint of the micro, small and medium enterprises further on the government marketplace. So we'll continue engaging with the stakeholders and improve on that," he added.

Kumar also revealed that GeM is working on a purchase order (PO) financing model, which aims to help MSMEs access credit earlier in the procurement cycle.

"One distinguishing feature which we are working on is the purchase order finance, which is very distinct from the invoice finance," he said, adding that "We are moving from shipping as soon as you get the order. So that facility we will be creating, and we are very confident that we will be able to garner a lot of business for the PO finance."

Speaking about institutional support, Kumar said, "Yes, RBI keeps on helping the MSME vertical. That continues, like priority sector lending and other kinds of initiative,s which RBI can do."

On the ease of doing business, he emphasised GeM's efforts to improve the digital experience.

"We are trying to create more functionality to increase the UI/UX experience through the GeM portal. Gradually, we will be creating ease of selling, ease of buying, and from a mere facilitator, we would definitely like to become what is called the procurement assistant," he explained.

Focusing on the platform's long-term vision, Kumar said making MSMEs future-ready remains a key priority.

"We got to know that there is a lot of room for improvement so far as the handholding of the micro, small and medium enterprises is concerned. Whatever we do, there is always a scope for further improvement because this is one very vibrant sector," he said.

As the Prime Minister says, Atma Nirbharta is an initiative where everybody has to participate, and the MSME vertical has a significant stake in doing so, he added.

- ANI

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Reader Comments

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Rohit P
Great achievement! But I hope they focus on improving the user interface. The current GeM portal can be quite confusing for first-time users, especially for small business owners who aren't tech-savvy. The promised UI/UX improvements can't come soon enough.
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Arjun K
Heartening to see MSME participation exceeding targets! This is exactly what Atma Nirbhar Bharat should look like - empowering our small businesses through digital platforms. The 45% MSME participation against 25% target shows the program's real success.
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Sarah B
The PO financing initiative could be revolutionary for cash-strapped MSMEs. Access to credit at the order stage rather than after delivery will solve a major pain point. Hope this gets implemented quickly across all states.
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Vikram M
While the numbers are impressive, I hope they're also tracking the quality of transactions and vendor satisfaction. Sometimes the payment delays from government departments can be challenging for small businesses. Timely payments are crucial for MSME survival.
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Kavya N
As someone who has helped several MSMEs register on GeM, I can say the platform has come a long way. The handholding support mentioned is much needed - many small businesses in tier 2-3 cities still struggle with the digital transition. More regional language support would help! 🇮🇳

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