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.
