GeM partners with Indian Steel Association for its members to sell goods directly to govt

GeM partners with Indian Steel Association for its members to sell goods directly to govt

The Government e-Marketplace (GeM), India’s national public procurement platform, has taken a significant step towards enhancing its operations and strengthening partnerships within the industry. GeM recently announced the signing of a memorandum of understanding (MOU) with the Indian Steel Association (ISA), solidifying their collaboration in New Delhi. This strategic alliance is poised to have far-reaching implications for the procurement landscape in India.

The MOU signifies a formal agreement between GeM and the Indian Steel Association, a prominent industry body that includes key players such as SAIL (Steel Authority of India Limited), JSW Steel, Tata Steel, ArcelorMittal Nippon Steel India, and other esteemed steel organizations. This partnership brings together the expertise and resources of GeM, a platform that streamlines government procurement processes, and the collective strength of leading steel manufacturers in India.

The collaboration holds several implications and potential benefits:

1. Enhanced Procurement Efficiency: GeM is renowned for its efficiency in government procurement, providing a transparent and seamless marketplace for various goods and services. The partnership with ISA could further streamline the procurement of steel and related products, making the process more efficient and cost-effective.
2. Quality Assurance: With ISA’s membership comprising renowned steel manufacturers, the collaboration is expected to bolster the quality and standards of steel products procured through GeM. This ensures that government agencies receive high-quality materials for their projects.
3. Cost Savings: By leveraging the collective bargaining power and expertise of ISA members, GeM could negotiate more favorable terms and prices for steel procurement. This may lead to cost savings for government entities and taxpayers.
4. Supporting Domestic Industry: Collaborating with ISA aligns with the government’s “Make in India” initiative, as it encourages the use of domestically produced steel in government projects. This supports the Indian steel industry’s growth and self-reliance.
5. Market Access: The MOU could also potentially facilitate easier market access for ISA members to government procurement opportunities, expanding their reach and customer base.
6. Technology Integration: The partnership may involve the integration of technology solutions to enhance the procurement experience, such as improved tracking and monitoring of steel deliveries and inventory management.

   The collaboration between the Government e-Marketplace (GeM) and the Indian Steel Association (ISA) aims to foster a more inclusive and diverse business environment within the public procurement landscape. One of the primary objectives of this partnership is to facilitate the participation of all ISA members as sellers on the GeM platform, irrespective of their size or scale of operation. This move is expected to have several significant implications:

   1. Diverse Supplier Base: By onboarding all ISA members as sellers on GeM, the procurement platform is set to benefit from a broader and more diverse supplier base within the steel industry. This inclusivity ensures that businesses of varying sizes and capacities have an equal opportunity to engage with government procurement.
   2. Market Access: Small and medium-sized enterprises (SMEs) within the ISA membership, which may have previously faced barriers to entering the government procurement market, can now access and compete within this significant marketplace. This expanded market access can be a game-changer for SMEs, potentially boosting their growth and competitiveness.
   3. Knowledge Exchange: The MOU promotes knowledge exchange between GeM and ISA. This exchange of insights and expertise can lead to more effective and responsive procurement processes, benefiting both buyers and sellers. It can also foster innovation and best practices within the procurement ecosystem.
   4. Direct Communication: Establishing direct communication channels between GeM and ISA facilitates seamless interaction and collaboration. This direct line of communication can help address any challenges or concerns promptly and ensure that the needs and expectations of ISA members are met.
   5. Improved Accessibility: The partnership aims to improve accessibility for ISA members to the public procurement market. This can be achieved through training, guidance, and support mechanisms that help sellers navigate the GeM platform and its processes effectively.
   6. Market Expansion: ISA members can leverage the GeM platform to expand their market reach beyond their existing customer base. Access to government procurement opportunities can significantly increase business prospects for these companies.

   In essence, this collaboration seeks to create a more inclusive and equitable procurement ecosystem. It encourages the participation of a wide spectrum of businesses, fosters collaboration, and leverages technology to enhance transparency and efficiency. By promoting knowledge exchange and direct communication, GeM and ISA are working together to create a win-win scenario where both buyers and sellers benefit from a dynamic and competitive marketplace.

   The Indian Steel Association (ISA) holds significant influence within the country’s steel industry, representing approximately 65% of the crude steel production in India. ISA boasts a membership of 16 key organizations, including all major steel industry players, as well as 7 executives. In addition, it has 2 associate members, further expanding its network and reach within the sector.

   The partnership between GeM and ISA carries substantial implications for ISA members. It presents an opportunity for these steel industry leaders to engage with the government sector, a major consumer of steel products. Through their onboarding onto the GeM platform, ISA members can directly interact with government bodies and agencies involved in procurement. This access to government procurement opportunities has the potential to significantly benefit the steel manufacturers and foster collaborations with government projects and initiatives.

   The involvement of ISA members on the GeM platform aligns with the government’s commitment to promoting transparency, efficiency, and inclusivity in public procurement. By leveraging the capabilities of GeM, ISA members can streamline their engagement with government buyers, participate in tenders and contracts, and contribute to the development of critical infrastructure and projects across the country.

   This partnership underscores the importance of industry-government collaboration in driving economic growth and development. It not only benefits the steel industry but also contributes to the overall efficiency and effectiveness of public procurement processes. As a result, it has the potential to enhance the quality and timeliness of infrastructure projects and government initiatives that rely on steel products, furthering India’s economic progress and sustainable development.

   India’s steel industry continues to play a significant role on the global stage, as highlighted in the annual report of the Ministry of Steel. In the calendar year 2022, India emerged as the second-largest producer of steel worldwide, a remarkable achievement. The country’s production of 118.71 million tonnes of finished steel in 2022 underscores its substantial contribution to the global steel market.

   The steel sector’s prominence is not limited to its global ranking; it also holds substantial economic importance domestically. While contributing over 2% to India’s GDP, the steel industry plays a vital role in supporting economic growth, job creation, and infrastructure development within the country. It serves as a foundational sector that impacts various other industries, including construction, manufacturing, and transportation.

   The steel sector’s continued growth and global competitiveness are indicative of India’s industrial prowess and its capacity to meet both domestic and international steel demand. As the country undergoes rapid urbanization and infrastructural expansion, the steel industry’s contributions become even more crucial in driving sustainable development and fostering economic resilience.

   India’s position as the second-largest steel producer reflects its commitment to industrial development and its capacity to meet the evolving needs of a growing nation. This achievement not only elevates India’s standing on the global stage but also underscores the steel industry’s integral role in the country’s journey towards economic prosperity and self-reliance.

   The Government e-Marketplace (GeM) platform has demonstrated remarkable growth and success in recent years, achieving substantial milestones in terms of procurement and business figures. In the current financial year, GeM has already crossed an impressive gross merchandise value (GMV) of Rs 1.5 lakh crore. This achievement signifies the platform’s crucial role in facilitating government procurement processes efficiently and transparently.

   Furthermore, GeM is poised to surpass its previous yearly-best business figures, with expectations of reaching Rs 2.01 crore GMV in the Financial Year 2023. This projection reflects the platform’s continued growth trajectory and its increasing significance in government procurement.

   The journey of GeM has been marked by remarkable milestones:

   1. Rapid Growth: GeM achieved its first Rs 1-lakh-crore procurement milestone within just four and a half years since its inception, demonstrating its swift adoption and effectiveness in streamlining procurement processes.
   2. Consistent Expansion: The platform continued its growth trajectory, achieving the second Rs 1-lakh-crore milestone during the financial year 2021-22. This reflects the platform’s consistent expansion and utilization by government agencies.
   3. Early Growth Stages: GeM reported initial business figures of about Rs 400 crore in 2017, followed by substantial growth in its second year, reaching approximately Rs 5,800 crore.
   4. Exponential Growth: Over the years, GeM has witnessed exponential growth, with its GMV increasing from around Rs 35,000 crore two years ago to an impressive Rs 1.06 lakh crore in the previous year.

   The success of GeM is indicative of its effectiveness in modernizing and digitizing government procurement processes. It offers transparency, efficiency, and cost-effectiveness, making it a pivotal platform for government agencies to procure a wide range of goods and services.

   As GeM continues to set and achieve new milestones, it reinforces the government’s commitment to promoting transparency, competitiveness, and inclusivity in public procurement. The platform’s ability to adapt and grow is crucial in supporting the government’s initiatives and economic development goals while ensuring accountability and value for taxpayers’ money.