ONDC targets GeM and PLI beneficiary business for growth
PLI beneficiaries. “GeM has registered phenomenal growth and the list of PLI beneficiaries is also expanding, as the scheme has started to yield results," said the official, requesting anonymity. Taurani is sceptical.
“These players will see only modest benefit as ONDC still needs to work hard to improve its user experience, which is unlikely to happen unless it invests heavily in building better technology, last-mile delivery fulfilment and customer acquisition channels," he said. GeM was launched in 2016 as a one-stop online platform for government buyers to procure goods and services from sellers. It is today the third-largest platform in the world for procurement of goods and services, after Korea's On-Line e-Procurement System (KONEPS) and Singapore's GeBIZ.
It has over 63,000 government buyer organizations and more than 6.2 million sellers and service providers. The platform has added central government ministries as well as states, leading to a big growth in business. In the first quarter of 2024-25, GeM's gross merchandise value (GMV) was ₹1,24,761 crore, which is a 136% year-on-year increase.
Government data shows that GeM's services procurement grew 205% in 2023-24. The order volume that fiscal grew 23.6%, about half of which was from micro and small enterprise (MSE) sellers. Government officials attribute this increase to engagement from states like Uttar Pradesh, Delhi, and Gujarat.
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