Flipkart and Amazon could soon loose their position as the largest e-Marketplace.
If everything goes as planned, the government of India will have it’s own shopping portal named as GeM (short for Government e-Marketplace).
The portal, conceptualized by the government’s central purchase arm, will allow government officials to make routine office purchases online.
The Directorate General of Supplies and Disposals (DGS&D) has developed the portal.
Some estimates suggest that expenditure on regularly used office items ranges between 10% and 20% of the government’s non-plan expenditure. The actual figure stands at a staggering INR 14.28 lakh crore.
Interestingly, Flipkart was aiming to sell goods worth up to $12 billion (Rs 80,000 crore) by June 2016.
The Significance of GeM:
The move, if brought to reality, can go a long way in bringing transparency in the buying process of goods and services by the government.
The procurement process of government often gets entangles in long drawn procedures and clearances.
Furthermore, this delay results in cost escalation and many times compromises the transparency of the process.
The launch of GeM will address all these issues in addition to making it easier to procure goods in a transparent manner.
This will help in aggregating demand which will result in lower prices, better quality and faster procurement.