REVOLUTIONIZING PUBLIC PROCUREMENT IN INDIA: THE IMPACT OF THE GOVERNMENT E-MARKETPLACE (GeM)

Public procurement plays a crucial role in the economic development of a country specially developing countries. It accounts for a significant share of government spending. In OECD countries, public procurement is estimated to represent 25-30% of GDP, while in India, it constitutes around 20% of GDP. It serves as a key tool for governments to achieve their policy objectives, such as poverty reduction, job creation, and infrastructure development. By investing in public procurement, governments can stimulate local industries, encourage innovation, and promote economic growth. However, traditional procurement processes in India have often been subject to administrative hurdles, lack of transparency, and corruption. The Government e-Marketplace (GeM) has emerged as a transformative solution, reshaping India's public procurement landscape. By leveraging technology, GeM has revolutionized the way government purchases goods and services. It’s an online platform for public procurement in India. In order to ensure a fair and competitive process during procurement for both the buyers and sellers, this new initiative was pioneered on the 9th of August 2016 by the Ministry of Commerce and Industry. The main aim here was to create a platform which is inclusive, efficient and also transparent. This technological innovation has significantly simplified procurement procedures, reduced bureaucratic delays, enhanced transparency, and fostered increased competition among vendors. It supports a wide range of goods and services, enabling government departments, public sector enterprises, and other public bodies to access products at competitive prices. This paper explores the transformative impact of GeM on India’s public procurement system, examining its role as public policy and technological innovation. By reducing administrative rigidness and improving transparency, GeM has contributed for better governance and accountability and cost efficiency. Moreover, it has safeguarded the interest of the small and medium-sized enterprises (SMEs) by giving them direct market access. The paper also addresses the challenges and opportunities faced by GeM and outlines the path forward for it. Additionally, it analyses how technological innovations like GeM can modernize and optimize procurement systems in emerging economies.