It has been one such brilliant online platform by the revolutionary government e-Marketplace, changing the hitherto procurement landscape for MSMEs in India. GeM registration today has quickly emerged as one of the milestones that a business must achieve before going ahead with government procurement. This article explores the way sellers and buyers can benefit from GeM registration; the specific benefits to MSMEs are well-defined, and what businesses can do in order to make maximum utilization of the portal is also defined.
Why MSMEs Require GeM Registration?
The SMEs with GeM registration were now able to tap the gigantic market of government buyers either through ministries and departments or PSUs. These are the grand reasons behind the momentum business GeM registration has gained among small and medium enterprises:
- Level Playing Field for Suppliers: The supply chain portal directly connects the suppliers with the government buyers without engaging any intermediate parties.
- Sanitised Process: From registration to the tendering and payment process, everything can be done online and therefore available even for the smallest and the poorest resource-scarce MSMEs.
- Increased Repute and Trustworthiness: MSMEs registered on GeM are viewed by government buyers as more credible and trustworthy; hence making prospects of contracts even more hopeful.
Registration on GeM and MSME Benefits:
GeM registration provides several advantages for the sellers and suppliers that influence the growth of MSMEs in India successfully. Keeping this in view, the major advantages are as follows:
1. Enhanced Market Access
- The list of diversified government buyers is exposed to MSME once they are registered on GeM. GeM is open to all government departments, hence exposing MSMEs to supply goods and services to all parts of the country.
- It is also unique because the same platform, according to GeM, provides an even playing field to various vendors in terms of government tenders, which would not have been the case had this traditional method of procurement been followed.
2. Increased Transparency in the Procurement Process
- Highly transparent process within the GeM wherein clear processes defined procurement procedures and terms, whereby procurable procurements could be completed merely by merit-based selection of the most aptly suited vendor.
- Through the rating and feedback mechanism on the platform, sellers are assured of offering quality service to buyers and assisting in developing trust in making decisions.
3. Less Painsome Procedures and Savings
- Procurement involves several processes that are usually not as painful because of GeM registration. One platform enables the listing of products, bids, and communication with potential buyers.
- Time and cost saving since GeM does not involve multiple visits and paperwork that are associated with traditional government procurement.
4. Assurance of On-Time Payment
- One of the serious curses MSME faces while transacting with traditional procurement is delayed payments. GeM features ensure a fixed timeline payment, where suppliers are paid by the government buyer within a set time frame.
- On-time payment is very important to MSMEs as it facilitates their ability to work and invest in the business.
5. Scope for Innovation and Expansion
- GeM presents an opportunity for MSMEs to showcase innovative products or alternate services which then become visible to government buyers otherwise not known to them.
- As MSMEs get easy access to a whole array of Government projects, they can expand their operations by expanding either the products or services offered to enhance their market reach.
Steps for MSME Registration on GeM:
MSME registrations for obtaining opportunities in Government Purchases can be done through the below steps in India
Step 1: Access the GeM Portal - Login to the Official Government e-Marketplace Web Page.
2. Registration: Recruit a supplier or vendor with minimum business information and valid GSTIN, PAN, and banking details
3. Forging Mandatory documents uploads: Aadhaar card, incorporation of the company, among other necessary certifications
4. Listing of products and services: After GST registration, MSMEs will be eligible to list the product or services under the relevant category, thus available on the search list of the buyer.
5. Handy Alerts: GeM regularly provides the seller with updates on current and upcoming tenders and requirements, and procurement news. Keeping oneself updated helps businesses to take quick responses to the new opportunities that come along.
Challenges and Future Scope of GeM for MSMEs:
Although registration in GeM has quite a number of benefits, MSMEs face issues like no knowledge of navigating through the platform, quality compliance, and competitive pricing. GeM keeps innovating and improving on these issues through training, increasing outreach, and also making sure that experiences on the platform improve with time.
With all these directions the government is taking, GeM can surely be a powerhouse for MSMEs. With the "Atmanirbhar Bharat" self-reliant India mission and emphasis on the digital economy, GeM registration will only become the future bet for MSMEs to prosper in a market of government procurement.
Final Thoughts: Transformation in Procurement with GeM
Undoubtedly, GeM registration has radically changed the face of government procurement for MSMEs-ease, transparency, and high accessibility. The digital transformation touches procurement not as one step forward but much more significantly as the gateway for MSMEs to amplify their presence and capabilities in the economy. For businesses that consider scaling up through government contracts, GeM provides an opportunity unmatched elsewhere process simplify, contracts are secured, and operations are scaled.
Going by the GeM registration, Indian MSMEs will be more vigorously interacting with governmental contracts, improving their credibility, and reaching a stable stream of projects to become a stronger self-reliant economy.
