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The Government E-marketplace (GeM) is catching up with e-commerce giants such as Amazon and Flipkart in terms of gross merchandise value. In FY22, annual procurement on the platform was pegged at ₹1-lakh crore up 160 per cent compared to the previous fiscal. This comes at a time when the overall e-commerce sector continues to visit robust growth even in post-pandemic times.
“GeM has taken a host of steps to onboard products of Self-Help Groups (SHGs), tribal communities, artisans, weavers, and MSMEs. 57 per cent of the total business on GeM has come through the MSME units, and female entrepreneurs have contributed over 6 per cent,” the survey noted.
It added that government’s Initiatives including the Digital India program, Unified Payment Interface (UPI), GeM among others have been major contributory factors to the growth of E-commerce in recent years.
ONDC
The Survey said the recent initiative of the launch of Open Network for Digital Commerce (ONDC) is also playing a significant role in democratising digital payments, enabling interoperability, and bringing down transaction costs. “ONDC provides better market access to sellers and helps bring the country’s remotest corners into the e-Commerce framework by empowering them with digitisation,” it added.
The overall e-commerce sector has witnessed strong growth in penetration in the post-pandemic times. According to the Global Payments Report by Worldpay FIS, India’s e-commerce market is projected to grow at 18 per cent annually through 2025. “The expansion of e-commerce to newer segments like grocery, fresh-to-home fruits and vegetables, and general merchandise has contributed to the expansion of the customer base beyond traditional buyers,” the Survey noted. As per a report by Bain & Company, emerging categories – fashion, grocery, general merchandise – would shore up e-commerce growth in India and would capture nearly two-thirds of the Indian e-commerce market by 2027.
“ There has also been an increase in the adoption of digital solutions by Micro, Small and Medium Enterprises (MSMEs) like e-commerce and e-procurement, realising the prospects of increased revenues and margins, improved market reach, access to new markets, and customer acquisition,” the Survey added.
The untapped rural market holds the potential for strengthening consumption growth with some e-commerce companies now gaining popularity in Tier 3 and 4 cities. In terms of order volume and valuation, post-Covid-19 years have been the most successful years for Indian e-commerce start-ups, the survey added.
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