New Delhi, 26th November 2024
India’s Government e-Marketplace (GeM), a cornerstone of public procurement, will undergo a week-long technical overhaul, creating ripples across the nation’s business ecosystem. From midnight on 26th November to 5th December, the platform will remain inaccessible, potentially disrupting government procurement transactions worth an estimated ₹7,000 crore.
A Critical Shutdown Amidst Growing Reliance
The unexpected downtime raises eyebrows as global e-commerce giants like Amazon and Flipkart boast near-zero outages, ensuring uninterrupted services. Given GeM’s critical role in central and state government operations, the week-long closure is surprising, considering its transformative impact on procurement efficiency.
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With over ₹4 lakh crore worth of transactions in the fiscal year 2023-24 alone, GeM has cemented its place as a vital digital marketplace for public sector procurements. Buyers and sellers have been advised to pre-plan their activities, including procurement, deliveries, payments, and other business-critical operations, before the shutdown begins.
What’s Behind the Outage?
Tata Consultancy Services (TCS), GeM’s strategic partner since 2023, has been entrusted with upgrading the platform to ensure it remains a state-of-the-art procurement solution. This technical overhaul aims to enhance its infrastructure, further modernizing India’s public procurement system.
A notice on the portal reads:
“The GeM portal is undergoing a major technical overhaul and will be unavailable for user transactions. Buyers are advised to plan procurement, payment to sellers, CRAC generation, and more, while sellers should manage deliveries, invoicing, and transaction charges ahead of the downtime.”
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A Platform Empowering MSMEs
Since its inception in September 2017, GeM has emerged as a significant contributor to India’s economy, especially for Micro, Small, and Medium Enterprises (MSMEs). Over 9.7 lakh MSMEs are registered on the platform, collectively receiving orders exceeding ₹4.19 lakh crore, accounting for 40% of GeM’s total procurement value.
In October 2024 alone, central organizations procured goods and services worth approximately ₹30,264 crore through GeM. The portal has been instrumental in streamlining procurement processes with transparency and efficiency, making India a global leader in public procurement platforms, second only to South Korea’s KONEPS.
A Temporary Setback for a Promising Future
While the week-long closure may cause short-term disruptions, it is expected to pave the way for a more robust and scalable GeM platform. The upgrade is a step toward sustaining GeM’s rapid growth and ensuring its ability to meet the rising demands of India’s expanding digital economy.
