The Impact of GeM on Small and Medium Enterprises (SMEs) in India

 Small and Medium Enterprises (SMEs) are vital to the Indian economy. They employ a huge number of people and contribute significantly to the country's GDP. SMEs in India, on the other hand, confront some hurdles, including restricted access to markets, money, and technology.

The Indian government created the Government E-Marketplace (GeM) in 2016 to enhance openness, efficiency, and simplicity of doing business in public procurement. 

IMPACT OF GEM ON SMEs

Increased market access: Due to limited resources and a lack of visibility, SMEs sometimes struggle to get market access. GeM creates a fair playing field for suppliers, especially small and medium-sized enterprises, to participate in government procurement. This enhanced exposure and market access may assist SMEs in scaling up their operations, diversifying their client base, and building their brand recognition.

Transaction costs are reduced since the traditional procurement procedure is time-consuming, costly, and prone to corruption. GeM simplifies the procurement process by lowering transaction costs and increasing transparency. This can help SMEs who may not have the means to engage in the procurement process.

Access to working capital has been improved through GeM's collaboration with banks and faux-banking financial organizations (NBFCs). This can assist SMEs in overcoming one of the most significant impediments to expansion - access to funding.

Supports entrepreneurship and innovation: GeM supports entrepreneurship and innovation by fostering fair competition among suppliers. SMEs, in particular, might profit from this since they are more likely to provide distinctive and innovative ideas.


GeM has enhanced the efficiency of the purchasing procedure by shortening the time it takes to execute a transaction. This has assisted SMEs in improving their cash flow and lowering their operational expenses.

Other areas that GeM may develop to better serve SMEs in India are listed below.

Procurement process simplification: While GeM has made procurement procedures more efficient, it may still be difficult for SMEs to traverse. To encourage more SMEs to participate, the government might streamline the registration and bidding procedure by eliminating paperwork and streamlining the process.

Integration with other state projects: The Indian government has developed various SMEs-supporting initiatives, including the Make in India program and the Startup India initiative. The geM may be used with these programs to provide a more holistic environment for SMEs to develop and prosper in.

Collaboration with industry organizations: To give greater assistance and resources to SMEs, GeM can work with industry organizations that include the Confederation of Indian Industry (CII) and the Federation of Indian Chambers of Commerce and Industry (FICCI).

The geM can stimulate the development of regional supply chains, which can assist SMEs by providing additional chances for them to engage in procurement. Boosting local production can also help the government's Make in India drive.

Overall, GeM has benefited Indian SMEs, although there is always potential for development. By resolving the aforementioned difficulties and taking further initiatives to promote SMEs, GeM can remain a great instrument for boosting innovation and growth in the economy of India.

Comments

Post a Comment

Popular posts from this blog

GeM's Digital Payment Integration: Advancing Cashless Transactions in Government Deals

  The GeM platform was created by the Indian Government to conduct trade and business free from any type of corruption and by following utmost transparency and efficiency.  The platform provides a diverse range of products and services. All registered suppliers have access to the site, and government purchasers may choose the best value for their money from among the available possibilities. As we all know that we are living in an era of digitalization and technological advancement and this is also evident in the GeM platform . GeM has taken crucial steps in integrating digital payment systems. By using up-to-date technology and eliminating the need for cash-based transactions, it has transformed the government procurement system, making it more accessible, secure, efficient, smooth, and convenient.  The risks and issues involved in cash-based transactions have been eliminated as a result of  GeM's integration of digital payment methods. To protect sensitive ...
Read more

SAIL Crosses Rs 10,000 Cr Procurement Mark on GeM Portal Since Inception

  Located in New Delhi, India, Steel Authority of India Limited is a central public sector organization. It is owned by the Ministry of Steel, Government of India, and will have a 2021–22 fiscal year revenue of INR 1,03,480 billion. Five integrated plants and three special steel plants operated by SAIL, primarily in India's eastern and central regions and close to domestic raw material sources, produce iron and steel.   The steel producer produces and markets a variety of steel goods. The largest steel-producing company in the nation is SAIL, which is part of the Ministry of Steel and has an annual capacity of more than 20 million tonne. GeM is an entirely digital, cashless, system-driven e-marketplace that makes it possible to buy common goods and services with little to no human interaction.   GeM SPV (Special Purpose Vehicle), a wholly owned, nonprofit corporation run by the Ministry of Commerce and Industries of the Government of India, is the owner of the pla...
Read more

Ensuring Efficiency and Cost Savings through Government e-Marketplace

The emergence of technology has transformed many industries, and the government is no exception. Governments from all over the world have recently realized how effective and cost-effective electronic marketplaces (e-marketplaces) can be in streamlining procurement procedures. The Government e-Marketplace (GeM) , a platform that has experienced tremendous growth in India, is one such endeavor. GeM has changed the way traditional procurement is done by using technology to increase transparency, streamline processes, and promote competition. GeM's main goal is to establish a uniform platform for the smooth procurement of goods and services by government agencies and organizations. GeM has removed geographical constraints, cut down on paperwork, and minimized manual intervention by switching from offline to online procurement. Numerous advantages of this digitalization include increased effectiveness and cost savings for both consumers and sellers. The procurement procedure is firs...
Read more