New business

PM Modi: GeM portal providing MSMEs with new business opportunities; revitalize the Vocal for Local mission

Ease of doing business for MSMEs: On Sunday, Prime Minister Narendra Modi hailed the government’s public procurement portal Government eMarketplace (GeM) for enabling MSMEs’ participation in government tenders. Addressing the launch of 75 Digital Banking Units (DBUs) across the country, Prime Minister Modi said, “Today our small businesses and MSMEs are participating in government tenders through platforms like GeM. They get new business opportunities. Orders worth Rs 2.5 lakh crore have been placed on GeM so far.

“You can imagine how the country’s local economy and our Vocal for Local mission have benefited. Thanks to DBUs, many new opportunities will emerge in this direction. We will have to innovate in this direction,” Prime Minister Modi added.

According to the latest data available on the GeM portal, procurement of goods and services by central government ministries and departments crossed Rs 3 lakh crore. The cumulative transaction value of goods and services procured by government ministries from MSMEs through the GeM portal increased by around 116% to Rs 3.13 lakh crore from Rs 1.44 lakh crore in October this year last.

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Prime Minister Modi also urged small village-based businesses to switch to digital transactions and asked banks to connect with at least 100 merchants through branches in their respective areas to go fully digital for all transactions. “I am confident that this initiative will bring our banking system and our economy to a stage that will be ready for the future and have the ability to lead the global economy,” he noted.

The announcement of the creation of 75 DBUs was made this year in the budget by Finance Minister Nirmala Sitharaman. Specific financial services to be provided by DBUs included savings, credit, investment and insurance while on the credit provision front, to begin with, DBUs will provide end-to-end digital processing of small retail and MSME lending, from online applications to disbursements, said Shaktikanta Das, Governor, RBI in his remarks at the virtual launch of DBUs.

DBUs will also provide services related to some government-sponsored programs, he added. The products and services of these DBUs will be provided in two modes, namely self-service and attended modes, with the self-service mode being available 24 hours a day, 7 days a week, 365 days a year, Das said.

Also read: GeM: Public procurement crosses Rs 3 lakh crore; double in 12 months