Representative image for Indian startups.
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New Delhi: Government e Marketplace (GeM) plans to onboard 1 lakh startups on its platform that will enable new business entrants to participate in eligible public procurement bids despite not being able to meet the usual norms related to turnover and minimum years of experience, a senior official said.
So far, around 26,500 DPIIT-recognised startups are registered as sellers on the GeM portal. “Our target is to have all the DPIIT-recognised startups, which either have a product to sell or service to give out on hire to the government, on the GeM platform,” GeM Additional Chief Executive Officer Ajit B Chavan told DH.
As on June 30, the number of startups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) stood at over 1 lakh 40 thousands.
Normally start-ups are not able to qualify in government tenders’ eligibility criteria like minimum level of experience, past performance and financial position. Chavan said that GeM buyers have the option to give relaxation to the startups on most of these criteria.
“It is beneficial for both. Startups are getting business opportunities. For the government it improves choice. Startups are inherently more innovative and can provide more efficient and cheaper services,” he said.
Government e Marketplace (GeM) has facilitated public procurements worth over Rs 10 lakh crore since its inception in 2016. It has emerged as the world’s second largest government procurement platform only next to South Korea’s KONEPS (Korea ON-line E-Procurement System).
GeM, which is a Section 8 company setup under the administrative control of the Department of Commerce, recently slashed transaction charges that will benefit startups and micro, small and medium enterprises (MSMEs). The platform now does not levy any transaction charge on orders valued up to Rs 10 Lakh. This means the majority of the startups and MSMEs would not be required to pay any transaction charge for getting business through the GeM portal.
Chavan said around 39 per cent of the total order value awarded on GeM has been fulfilled by MSEs listed on the portal. DPIIT-recognised startups have been able to do business worth over Rs 29,000 crore through the portal.
Chavan further added that GeM has emerged as a crucial lever in supporting the growth of homegrown businesses and fostering economic self-reliance. “By prioritising domestic suppliers and encouraging local innovation, GeM acts as a vital catalyst for India's industrial development, employment generation and global competitiveness,” he said.
According to Chavan, during the financial year 2020-21, nearly 39% of the bids floated by the central government entities on GeM portal were earmarked with ‘Make in India’ preference. In FY 2024-25 (as of 25th September, 2024), this percentage has almost doubled to nearly 81%, clearly indicating a marked improvement in the adoption of ‘Make in India’ policy of the Government on GeM, he said.