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Mint
20-05-2025
- Business
- Mint
With India-UK FTA talks concluded, India to introduce global tendering for public procurement
New Delhi: India is preparing to roll out global tendering features on the government's digital commerce portal that will allow British firms as well as all other global firms to bid for government tenders, a senior official said. The move on the Government e-Marketplace (GeM) portal follows the successful conclusion of negotiations for the India-UK free trade agreement (FTA). These features are currently unavailable on the platform, used by state and central government departments agencies to buy and sell goods and services. Once introduced, they will enable British and other foreign suppliers to participate in tenders floated by Indian government buyers. The global tendering feature will open the platform to international suppliers, while a 'rate contract' option will allow government buyers to purchase goods and services at pre-approved prices for a fixed duration—ranging from three months to a year—reducing the need for repeated bidding, according to GeM chief executive officer (CEO) Mihir Kumar. 'We are working on it, and these features will be added to the GeM portal in the coming months,' said Kumar. He did not specify a timeline for the rollout. At present, procurement of global goods and services by the government is carried out directly by individual departments, which enter contracts with overseas suppliers on their own. These transactions are done outside the GeM portal, as the platform currently does not support global tendering. According to a policy paper from the UK government, India has granted 'legally guaranteed access' to its vast government procurement market under the FTA. This will enable British businesses to bid for around 40,000 Indian government tenders annually, valued at an estimated £38 billion. However, economic think tank Global Trade Research Initiative (GTRI) has cautioned that allowing UK firms to participate in India's central government procurement tenders could potentially crowd out Indian micro,small and medium enterprises (MSMEs), which depend heavily on preferential access to such contracts. The UK move follows a similar agreement with the UAE. 'Under the deal, British firms can bid for Indian tenders, and those with at least 20% UK content will be classified as class 2 local suppliers under India's Make in India policy. This effectively extends preferential treatment, originally intended for domestic firms, to foreign suppliers,' said Ajay Srivastava, co-founder of GTRI. A rate contract is an agreement between a buyer and a seller to supply goods or services at a fixed price for a specified period. Once the contract is in place, the seller has to deliver the items at the agreed rate, even if market prices rise during the contract period. Procurement through the GeM portal is mandatory for all central government ministries and departments. The platform is targeting transactions worth ₹ 7 trillion in 2025-26, up from ₹ 5.42 trillion in 2024-25. Currently, 40-50% of annual government procurement is conducted through GeM. 'We will focus on states this year. We have to increase the footprint of states,' Kumar said, adding that the platform now has over 164,000 primary buyers and 42,000 active sellers, offering more than 10,000 product categories and over 330 services. He said GeM is looking at some large-scale tenders, including ₹ 5,000 crore worth of equipment for the Akash Missile System to ₹ 5,085 crore for vaccines. The platform also supports specialized services such as drone-as-a-service for the All India Institute of Medical Sciences (AIIMS), geographic information systems and insurance solutions covering over 13 million lives, as well as wet leasing of chartered flights and CT scanners—demonstrating its adaptability in handling complex, mission-critical procurements.
Time of India
19-05-2025
- Business
- Time of India
India-UK FTA: Government plans GeM push for global tenders
India's GeM is set to introduce global tendering features this year, spurred by the FTA with the UK, which allows UK suppliers to bid for Indian tenders as Class II local suppliers. This move aims to tap into the UK market and facilitate transactions worth Rs 7 lakh crore in 2025-26. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads India's government e-marketplace , or GeM , plans to introduce global tendering functionalities for the public procurement portal this year, following a free trade agreement (FTA) with the UK that opens government procurement on both sides to entities based in the two countries, senior officials said Monday. At present, these features are not available on the GeM portal."We are working to add these features," said GeM CEO Mihir Kumar. Global tendering functionality would enable participation from international suppliers or overseas FTA has a chapter on government procurement wherein eligible UK suppliers would be allowed to bid for domestic tenders as deemed Class II local suppliers II local supplier is the one with the local content of more than 20% and less than 50%."We plan to bring rate contracts and global tenders on GeM this year. The FTA with the UK is one reason for global tendering to go live. We want to tap that market," said another official, adding that the functionality would have been launched later had the FTA not been the first time, UK has agreed to grant Indian suppliers non-discriminatory treatment in its public is looking at facilitating transactions worth Rs 7 lakh crore in 2025-26, compared to Rs 5.42 lakh crore in present, 40-50% of annual procurement of the government is happening through this portal.
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Business Standard
19-05-2025
- Business
- Business Standard
GeM to add global tendering, rate contract features on its portal
The Government e-Marketplace (GeM) is set to soon introduce global tendering and rate contract functionalities on its platform to raise global competition for public procurement orders, a senior official said on Monday. The addition of global tendering will allow international suppliers and vendors to participate in public procurement processes. Officials at the GeM indicated that the India-UK Free Trade Agreement (FTA) is among one of the factors prompting the development of a global tender facility on the portal. However, CEO Mihir Kumar clarified that work on the global tender feature was already underway and would have proceeded regardless of the FTA. "The global tender feature was at work, and the same would have been launched even without the UK treaty," stated Kumar. While addressing the media, Kumar said that the Government is working to add these features related to global tendering. Currently, these functionalities are not available on the GeM portal, which is the primary online platform for central ministries and departments to procure goods and services. Alongside global tendering, GeM is also working on introducing rate contracts — pre-negotiated price agreements that enable government buyers to procure goods and services over a specified period without repeated bidding. This feature is expected to streamline procurement and reduce administrative delays, particularly for frequently purchased items. Kumar also revealed that the government is exploring the possibility of bringing works — such as road and building construction and the establishment of large infrastructure facilities — onto the GeM platform, which currently supports only goods and services. Launched in 2016, the GeM portal is mandatory for central government ministries and departments for procurement and is rapidly becoming the backbone of India's digital procurement ecosystem. So far, it has facilitated transactions worth ₹5.42 trillion in FY24, and aims to touch ₹7 trillion in FY26, said Kumar. The portal currently accounts for 40–50 per cent of annual government procurement and is now focusing on increasing participation from states. 'We will focus on states this year. We have to increase the footprint of states,' Kumar added. GeM boasts over 1.64 lakh primary buyers and 4.2 lakh active sellers, offering more than 10,000 product categories and over 330 services. Eight states — Uttar Pradesh, Maharashtra, Manipur, Gujarat, Himachal Pradesh, Assam, Uttarakhand, and Chhattisgarh — have made GeM usage mandatory.
India Gazette
19-05-2025
- Business
- India Gazette
GeM aims for Rs7 lakh crore procurement, integrates AI in 10 languages
New India [India], 19 May (ANI): The Government e-Marketplace (GeM) on Monday announced plans for an ambitious procurement target of approximately Rs7 lakh crore for the current fiscal year. GeM also introduces artificial intelligence capabilities in 10 Indian languages to enhance user Mihir Kumar while speaking at GeM's 8th Incorporation Day press conference, emphasised the platform's significant impact on public procurement. He said, 'At GeM, we are innovating to simplify and empowering to transform--because when innovation meets inclusion, it unlocks opportunities for every Indian entrepreneur.'The platform has intensified its focus on transparency, detecting 8 lakh erroneous product catalogs and suspending 5,200 sellers for listing violations in FY 2025. Additionally, 8,800 cases of buyer-seller collusion were reported between 2023 and 2025, leading to the cancellation of 500 suspicious has played a crucial role in inclusive growth by onboarding over 10 lakh Micro and Small Enterprises (MSMEs), 1.3 lakh artisans and weavers, 1.84 lakh women entrepreneurs, and 31,000 the past eight years, GeM has witnessed substantial expansion, including a 14-fold growth in Gross Merchandise Value in the last four years and a threefold increase in its user base. It now serves 1.64 lakh primary buyers and 4.2 lakh active sellers, offering over 10,000 product categories and more than 330 has facilitated high-value transactions, including Rs5,000 crore worth of equipment for the Akash Missile System and Rs5,085 crore in vaccine procurement. It also offers specialised services such as drone solutions for AIIMS and insurance coverage for over 1.3 crore 36 states and Union Territories have adopted GeM, with eight states (Uttar Pradesh, Maharashtra, Manipur, Gujarat, Himachal Pradesh, Assam, Uttarakhand, and Chhattisgarh) mandating its remains committed to its digital transformation, aiming to create a more transparent, efficient, and inclusive marketplace for all stakeholders in India's procurement ecosystem. (ANI)
