The Government e Marketplace (GeM), a portal floated for government offices to buy goods and services, has the potential to handle transactions up to USD 100 billion per annum, an official said on Tuesday.

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The portal, launched in August 2016, has so far handled transactions of Rs 59,000 crore, processing 4.5 lakh orders, he said.

Speaking at a webinar organised by ICC, GeM CEO Talleen Kumar said that the platform is a part of the 'Vocal for Local' initiative of the Centre.

"The potential of GeM is that the platform can handle transactions worth USD 100 billion per annum, given the fact that 18 per cent to 20 per cent of the country's GDP goes into procurement expenses," he said.

Kumar said that the platform has been proved to be effective for sellers as they are able to do business during COVID times.

The platform is a move towards transparency and has been appreciated by several other countries, he said.

"The present version of GeM will be upgraded after enhancing the system and a unified procurement system will be put in place," Kumar said.

He said that vendors in the country are scattered and GeM will bring them on a single platform, adding that this will also lead to better price discovery.

Kumar said that GeM will be integrated with the railway procurement system which will make the supply chain more efficient.

GeM will also use artificial intelligence and data analytics for evaluation of sellers who are coming on the platform, he said.