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GeM of a Plan! Govt Preparing Ground for Global Tendering

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Government e-Marketplace (GeM): Global Tendering and FTA with the UK

The Indian government's e-marketplace, known as GeM, is set to introduce global tendering functionalities this year. This move follows a Free Trade Agreement (FTA) with the UK, which opens up government procurement to entities based in both countries.

Current and Future Features of GeM

  • Currently, the GeM portal lacks global tendering features.
  • Plans are underway to integrate these functionalities to allow participation from international suppliers and overseas vendors.
  • The FTA's government procurement chapter allows eligible UK suppliers to bid as Class II local suppliers.
  • A Class II local supplier has local content between 20% and 50%.

Implications of the FTA with the UK

  • GeM plans to introduce rate contracts and global tenders to leverage the opportunities presented by the FTA.
  • This is the first time the UK has agreed to provide non-discriminatory treatment to Indian suppliers in its public procurement markets.

Market Prospects and Targets

  • GeM aims to facilitate transactions worth Rs 7 lakh crore in 2025-26, up from Rs 5.42 lakh crore in 2024-25.
  • Currently, 40-50% of the government's annual procurement is conducted through the GeM portal.
  • Tags :
  • Government e-Marketplace (GeM)
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