GeM services procurement surges to ₹1,82,000 crore in FY24
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The procurement of services through the Government e-Marketplace (GeM) has witnessed remarkable growth, soaring from nearly ₹8,500 crore in FY21 to nearly ₹1,82,000 crore in FY24 (as of February 22, 2024) – marking an exceptional increase of nearly 176% from the previous fiscal year. This substantial growth underscores the platform’s increasing role in facilitating government procurement processes.
The value of services procurement has surpassed that of product procurement in a Financial Year, indicating a significant shift towards the acceptance of services by various buyers. In February 2024, services procurement accounted for nearly 80% of the total order value transacted on GeM. Moreover, the share of services procurement in overall procurement has exceeded 50% in the current financial year, showcasing the growing preference for services.
The surge in services procurement can be attributed to various factors, including the expansion of service offerings on GeM. The platform now offers a wide range of services required by government buyers, making it a one-stop-shop for procurement needs. The expansion of services has been a key driver of GeM’s success story, witnessing exponential growth in a short period.
One of the significant contributors to this growth is the two bids placed by South Eastern Coalfield Limited, a subsidiary of COAL India Limited, worth nearly ₹40,000 crore. This has significantly boosted the share of service procurement in the current month.
