18 Nov 2019Posted By: Mudit Handa

Significance of GeM Registration for the Transport Agencies

Everyone knows that the transportation sector is the lifeline of our economy. Being a tertiary sector action, transportation services bridge the gap between different industries. It encourages the rapid and hassle-free exchange of supply by ruling out all the hindrances in the entire supply chain. Very importantly, the transportation of goods takes place in India through roadways network. In this regard, the government has also worked a lot on the advancement of this key sector. As a matter of fact, the Goods Transportation agencies can freely deal with the government departments by obtaining a GeM registration.

All the Transportation agencies having a GeM registration can directly offer their valued services to the different government departments. Hence, we must briefly go through the significance of the transportation industry in India.


1. Overview of the transportation industry in India

As we discussed above that transportation is a vital sector of our economy. Besides, it has been the ever-growing industry. Going by the statistical data of the National Highways Authority of India (NHAI), we see that-

  • Indian highways are today serving as a crucial medium of transporting nearly 65% of the cargo and 80% passenger traffic in India.
  • Approximately 14.4% of the total GDP is spent every year in the transportation sector. This is much more than the average spending by other countries (8%).
  • Moreover, the cargo transportation segment will grow at the CAGR of 13.35% by FY 2020-21. Cargo transportation is predicted to expand to an astounding figure of US$ 307.70 billion by FY 2020-21.
  • This rapid growth will be driven by the advancement in assembling, retail, FMCG, e-commerce, Cou.

Know the importance of GeM in CEP Industry (i.e. Courier, Express, Parcel)

Logically, any sort of hindrance in the transportation sector can actually dismantle the entire supply network. This is why frequent changes in fuel prices momentously affect business operations. Hence, we can understand the significance of the transportation industry.

2. Role of goods transport agency in the transportation business in India

The Transportation of goods is conducted mainly by the help of zonal transporters or the shipping companies. There is a specific type of entity that provides this service. These are commonly known as goods transport agency or the GTA.  Massive consignments are often conveyed by these GTAs. Apart from that various government bodies & departments e.g. the railways, state roadways authorities and Post & telegraph department etc as well as major PSU production units e.g. BHEL, BEML, etc. that require transportation services. A transporting agency can directly offer the transportation service to such organizations if it has a GeM registration.

3. Importance of GeM registration for transporting agency

The Government e-Marketplace (GeM) was set up by the Ministry of Commerce & Industry, Government of India as a state-run B2G e-commerce portal in 2016. The intent behind the beginning of the GeM portal was to renovate the mode of the procurement of supplies in various Government departments, PSUs, ministries, and other Government organizations, etc.

All the dealers and service providers having GeM registration can truly avail the benefits such as-

  • Transparency in Government bids,
  • Digital transaction
  • A Tech-driven e-commerce interface that enables smart and rapid procurement supplies with little human interface.

4. Development of the GeM portal

The development of the GeM marketplace can be easily ascertained from the fact that so far, over 4.2 lakhs of different types of supplies are now easily available over this portal.

  • This rapid advancement is owed to a vast network that has swelled to 1.3 lacs + suppliers and the service providers who have now obtained the seller GeM registration.
  • Their valued goods and services are now being accessed by above 25,000 government buyers who have already obtained the buyer GeM registration.
  • Above all, it has been revealed by the government that in the past 2 years, the GeM portal has now crossed INR 10,000 crores in gross commodities valuing.

5. Role of GeM in the growth of the transportation industry

With transforming economic scenario, for instance, rapid globalization in all business sectors, have increased the demand in the transportation sector.

In this regard, the Transport Department is determined to meet the growing demand for giving an efficient open transportation framework. Along the same lines, the GeM portal is expanding day by day and has now become efficient enough to cater to the need of Transportation services.

Today, the Transporters having a GeM registration as service providers are rapidly progressing their business throughout India by providing their services to various ministries, departments, PSUs and other government bodies. 


If you need any sort of guidance with regard to the GeM registration process, please feel free to contact our business advisors at 8881-069-069.

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Posted By K KUMAR
Posted Date 2020-09-01 17:53:55

We having own HMV and we wish to give a transport service to GEM Kindly guide in this regard

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