Context
The Government e-Marketplace (GeM) has achieved a Gross Merchandise Value (GMV) of
₹18.4 lakh crore, including ₹5 lakh crore procurement in FY 2025–26. The platform has emerged as a major pillar of India’s digital governance and public procurement reforms.
About GeM
Launch and Administration
- Launched in 2016 by the Ministry of Commerce and Industry.
- Operated by the GeM Special Purpose Vehicle (SPV).
- Replaced the earlier Directorate General of Supplies and Disposals (DGS&D) system.
Objective
GeM aims to ensure:
- Transparency in procurement
- Competitive pricing
- Efficient bidding
- Timely delivery of goods and services
Legal Basis
- Procurement through GeM is mandated under the amended General Financial Rules (GFRs) for government departments.
Key Highlights
Rising Procurement Volume
- GeM has crossed ₹18.4 lakh crore GMV.
- Procurement worth ₹5 lakh crore was recorded in FY 2025–26 alone.
MSME Participation
- MSMEs account for nearly 68% of total orders.
- They contribute around 47.1% of total GMV.
- More than 11 lakh MSMEs are registered on the platform.
Increasing State Participation
- Procurement by States and Union Territories increased by 38.3%, indicating wider adoption.
Inclusive Growth
- Participation of women-led enterprises, startups, and SC/ST entrepreneurs has significantly increased.
Technology Integration
GeM uses:
- Artificial Intelligence (AI)
- Machine Learning (ML)
- Data analytics These tools help in:
- Fraud detection
- Price monitoring
- Efficient bidding and vendor assessment
Significance
Promotes Transparent Governance
- Reduces human discretion and corruption in procurement processes.
- Enhances accountability and auditability.
Boost to MSMEs and Startups
- Provides direct market access to small businesses.
- Encourages formalisation and digital inclusion.
Fiscal Efficiency
- Competitive bidding lowers procurement costs and improves value for public money.
Strengthening Digital Governance
- Supports India’s Digital Public Infrastructure (DPI) ecosystem through paperless and cashless procurement.
Challenges
- Digital literacy gaps among small vendors.
- Cybersecurity and data privacy concerns.
- Need for faster dispute resolution and grievance redressal.
Way Forward
- Expand digital awareness among rural enterprises.
- Strengthen cybersecurity architecture.
- Improve logistics integration and vendor support systems.