IAS Gyan

Daily News Analysis


3rd March, 2023 Economy

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  • A function was held to commemorate the success of the “SWAYATT”


  • SWAYATT is an initiative to promote start-ups, women and youth advantage through e-Transactions on government e Marketplace (GeM).
  • It was launched in 2019 under the Ministry of Commerce and Industry.
  • The intent of SWAYATT is to promote the inclusiveness of various categories of sellers and service providers on the portal. This is supposed to be done by taking proactive steps to facilitate their training and registrations of such specific category of manufacturers and sellers, develop women entrepreneurship and encourage participation of MSME sector and start-ups in public procurement.

Government e-Marketplace

  • The Government e-Marketplace (GeM) is an online platform for public procurementin India. [central and state governments and CPSEs to procure goods and services online.]
  • The initiative was launched in 2016 by the Ministry of Commerce and Industry with the objective to create an open and transparentprocurement platform for government buyers.
  • The purchases through GeM by Government users have been authorized and made mandatory by the Ministry of Finance.
  • The platform is owned by GeM SPV (Special Purpose Vehicle) which is a 100 percent Government-ownednon-profitcompany under the Ministry of Commerce and Industries.
  • GeM is a contactless, paperless and cashless online marketplace that replaced the Directorate General of Supplies and Disposals (DGS&D) in 2016.

Objective of the GeM portal-

The major objectives of the GeM portal are summarized hereunder-

  1. To increase efficiency, transparency and speed in public procurement.
  2. To provide multiple modes of procurement like direct purchase; bidding with reverse e-auction; e-bidding and direct reverse auction.
  3. To make ministries/ government departments to mandatorily procure goods and services from the portal.
  4. To enable efficient price discovery; economies of scale and dissemination of best practices.

Benefits of the GeM portal-

GeM portal provides the following benefits to the buyers of goods or services-

  1. A higher range of product varieties is available on the portal which enhances the customers choice.
  2. Transparency of price and listing of various products for individual categories of goods as well as services.
  3. Price comparison of multiple suppliers.
  4. User-friendly dashboard for buying; monitoring supplies as well as payment.
  5. Easy search, select compare and buy the facility.
  6. Facilitates an easy return policy.
  7. Allows multiple consignee selection for services.

GeM portal provides the following benefits to the sellers of goods or services-

  1. Sellers gets easy access to the National Public Procurement market.
  2. Direct access to various government departments and government organizations.
  3. Easy access to participate in bids/ reverse auction.
  4. In case of rejection of goods, the seller will be able to view the reason for said rejection.
  5. Sellers can anytime reverse the auction of their goods and services.
  6. Sellers can obtain registration on the GeM portal without any charges/ fees.

How GeM Benefits MSMEs?

  • Of all the sellers and vendors registered on Government e-Marketplace, a huge % are MSMEs.
  • As a part of MSME support and outreach programme, the online platform wants to onboard a large number of MSMEs.
  • The government is seeking to ease the credit availability for MSMEs to encourage them and support to join GeM. This step is being taken especially for startups. The government e-marketplace is now also focusing on service sectors like analytic services, inspection, webcasting, and transportation. This platform by the government is just an indicator of how online shopping in India has gone to the mainstream.
  • The government e-marketplace has eliminated tedious multiple levels of verification. This significantly reduces the lead-time in government procurement. Likewise, MSMEs can register themselves easily and enjoy these new opportunities. Also, with them getting registered with GeM, eliminates intermediaries.
  • In the previous 2 years, government e-marketplace has provided MSMEs a wider market reach with access to a number of potential suppliers.
  • In addition, GeM has also helped in job generation- the platform has helped in creating and securing jobs in the government sector.

Significance of GeM

  • Since its inception, GeM has brought in the visibility and transparency in public procurement.
  • The portal has transformed public procurement in India by driving its three pillars, namely, inclusion, usability and transparency and efficiency and cost savings.
  • According to World Bank, average savings for buyers in Government e Marketplace portal is about 9.75% on the median price. The Government of India has made it mandatory for sellers to display the 'country of origin' on products to be sold on GeM portal.


Q) Shed light on the main features of Government e-marketplace. How is the platform beneficial to buyers, sellers, and MSMEs?