The Economic Survey Report 2023 points out that the Government-e-Marketplace (GeM), which was launched in 2016 to build transparency in the procurement process across departments, grew 160 per cent in financial year (FY) 2022 and is giving tough competition to the e-commerce giants like Flipkart and Amazon. 

The report has also stated that the platform is helping MSME players in the e-commerce market to grow their businesses. 

“GeM attained an annual procurement of Rs one lakh crore within FY22, representing a 160 per cent growth compared to last FY. 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 report states. 

The survey has also figured that the increase in the usage of smartphones and the internet is helping the e-commerce business to achieve growth in the Indian market. It has added that the e-commerce start-up platforms like Meesho, Trell and shop 101 are enjoying popularity in tier 3 and tier 4 cities. 

“A vast untapped rural market holds the potential for strengthening consumption growth; new e-commerce companies like Trell, Meesho, and shop 101 are expanding and gaining popularity in tier-3 and 4 cities. The e-commerce industry is focusing on local solutions to penetrate rural areas by strengthening the network of rural distributors and retailers and using local distribution centres as pick-up and drop-off points, enabling logistics companies to serve rural consumers,” the Survey has claimed. 

It has also forecasted that the Indian e-commerce market will have an annual growth of 18 per cent every year till 2025. 

The Economic Survey 2023 has also revealed that India has outplaced other nations in terms of fintech adoption. The adoption rate has been 87 per cent, higher the global average rate of 64 per cent.