GeM 2.0: The Rise of Rate Contracts and Global Tendering

GeM 2.0: The Rise of Rate Contracts and Global Tendering

A few years ago, government procurement in India heavily relied on traditional methods, including hectic paperwork and multiple approval processes. To eliminate these obstacles, the Government of India introduced a digital platform in 2016: GeM (Government e-Marketplace). This digital portal connects the government ministries with local suppliers, bringing transparency, speed and digital convenience to GeM Tender buyers. 

As the system evolved, it became clear that more advanced and globally competitive features were needed, giving rise to an advanced version, GeM 2.0. This revamped portal promotes efficient pricing through rate contracts and opens doors to international market opportunities via Global Tenders.

In this blog, we dig deeper into the GeM 2.0 and discover how its advanced capabilities are upgrading the procurement process across India and globally.

What is GeM 2.0?

GeM 2.0 is the upgraded version of India’s Government e-Marketplace, designed to manage modern procurement challenges with wide efficiency and scope. While the original GeM portal successfully automates the manual procurement process, GeM 2.0 takes this concept further by integrating advanced features that address bulk procurement needs and Global Tender allowance.

This Portal works as a comprehensive online sourcing hub where authorised public buyers can access goods and services from both domestic and international suppliers. This maintains fundamental values of transparency and fair competition, while adding the powerful tools that streamline complex procurement processes.

GeM 2.0 caters to all government levels, ranging from central ministries to local administration offices, with a standardised procurement process in the entire public sector. The ability to manage both routine purchases and large-scale procurement requirements through automated systems and per-negotiated agreements sets GeM 2.0 apart.

Key Features of GeM 2.0

GeM 2.0 brings a new wave of digital features to public procurement by introducing powerful aspects like Rate Contracts and Global tendering. They are made to simplify bulk purchases and expand access to global suppliers.

Let’s understand how these powerful features are reshaping government procurement.

Rate Contracts: Bulk Procurement Made Simple

Rate contracts are pre-negotiated agreements between government agencies and verified vendors for specific goods and services at a fixed rate over a defined period (6 months - 3 years). This feature revolutionises how government departments manage their regular procurement needs. 

Here’s how it works: The government first analyses items needed by the department, like computers or any office essentials. Instead of each department issuing separate GeM Tenders for the same products, rate contracts allow the government to enter into bulk agreements with verified suppliers at pre-negotiated prices.

Overall, rate contracts create a win-win scenario where government buyers benefit from pre-negotiated and consistent pricing, while suppliers get assured demand and long-term business profit.

Key Benefits of Rate Contracts:

• Budget reduction of 20-30% through bulk purchasing power.
• Quick order placement without going through lengthy bid processes.
• Pre-verified suppliers ensure reliable product quality. 
• Reduced administrative workload and faster delivery.
• Equal pricing across all government departments.

 

Global Tendering - Opening Doors to International Markets

Global Tendering is GeM 2.0’s new feature that lets foreign companies sell goods and services to the Indian government. This aspect has opened India’s wide government market to companies from across the world, while giving government departments access to goods and services from other countries. 

The plus point of this feature is that it supports government departments in sourcing niche technologies or unique products that may not be easily available within the country. Foreign companies can register on the GeM 2.0 website and compete with the Indian government for Government Tenders above ₹200 crore, as per GFR (General Financial Rule) 2017, and must submit key records such as legal conformity certificates, accounting records and country-of-origin proof during registration.

A trusted portal like Tender Grid helps both domestic and worldwide suppliers navigate opportunities by providing detailed market insights and participation guidance.

Key Benefits of Global Tendering

• Get the next-gen technology and innovations from international companies.
• Affordable prices because more companies compete for the same tenders.
• Top-quality products that meet international standards.
• Global corporations invest money and share new technology in India.

Who Can Use GeM 2.0?

GeM 2.0 is open to a diverse range of users. On the buyer side, it includes central and state ministries, PSUs, and autonomous bodies. On the seller side, it welcomes private companies, including MSMEs and startups, public sector manufacturers, cooperatives, and individual businesses or service providers.

With a simple registration process, GeM 2.0 ensures inclusive participation across different sectors and business types.

Conclusion

India’s procurement market is evolving, and with GeM 2.0’s Global Tendering, government buyers now have access to specialised top-quality goods and services at an international level. It brings innovation, transparency, and fair competition to the forefront.

If you are a newcomer, supplier or business looking for a single platform to explore both GeM Tenders and Global Tenders, Tender Grid would be the best choice for this. This platform helps you to track opportunities and stay ahead of deadlines, all in one place. With the right tool, tapping into government procurement has never been easier or more rewarding. 

Let’s step into the world of smarter tendering. Track GeM and international opportunities together with Tender Grid.