By: Piyush Goyal
The Government e Marketplace (GeM) has rapidly emerged as a world leader in providing a transparent, inclusive and efficient platform for public procurement. It connects more than 1.6 lakh government buyers with 23 lakh sellers and service providers, becoming a key engine of Prime Minister Narendra Modi’s vision of Viksit Bharat 2047.
In nine years since PM Modi launched the transformative digital initiative, GeM has revolutionized the way government buys goods and services by weeding out corruption and giving business opportunities to startups, MSMEs, women and businesses in small town.
The user-friendly platform is a true gem that has replaced the notorious Directorate General of Supplies and Disposals, which had opaque and uncompetitive systems that gave an unfair advantage to a privileged few. Befittingly, the Commerce and Industry Ministry’s new office, Vanijya Bhawan, has been built on the land once occupied by this obsolete body.
Spectacular Growth – Since its inception in 2016, orders worth more than ₹ 13.4 lakh crore have been transacted on the GeM portal. Public procurement at the platform rose to a record ₹ 5.43 lakh crore in 2024-25. GeM aims to raise its annual business to Rs 7 lakh crore in the current fiscal. GeM has undoubtedly emerged as a technological behemoth in the public procurement landscape.
The magnitude of business transacted is likely to make GeM the world’s largest public procurement portal, surpassing well-established institutions like South Korea’s KONEPS, in the near future.
GeM has given greater opportunities to honest businesses, created jobs and supported India’s economic growth. In this context, GeM’s significance goes far beyond its phenomenal growth in financial terms, which itself would make any e-commerce giant jealous.
Engine of Equitable Growth – GeM serves as a critical engine of equitable growth in line with PM Modi’s mission of sabka saath, sabka vikaas. It provides startups, small businesses and women-led enterprises an easy path to showcase their products and services to government buyers without any intermediaries. By eliminating barriers to entry, the platform empowers small homegrown businesses to participate in e-tenders and expand their businesses.
Guided by the principle of inclusivity, GeM has incorporated various strategic initiatives to support the growth of small businesses. These include systems to help government buyers identify and select products and services offered by MSEs and women-led businesses.
Exceeding targets – Dedicated storefronts on GeM like “Startup Runway” and “Womaniya” have effectively increased the visibility of these businesses as well as their share in public procurement. This has helped the government meet and exceed its goals of 25% procurement from Micro and Small Enterprises (MSEs) and 3% from women-led businesses. Nearly 38% of the business transacted on GeM is awarded to MSEs, and procurement by women enterprises stands at nearly 4%.
As of April 2025, more than 30,000 Startups have conducted business worth over ₹38,500 crore through GeM. Further, 1.81 Lakh Udyam-verified women entrepreneurs have secured orders worth nearly ₹50,000 crore on GeM portal.
Big Savings – These changes have translated into savings ranging from 33% to 96% for certain order sizes. This remarkable reduction is a welcome change in line with the Modi government’s mission to enhance Ease of Doing Business and Ease of Living for the benefit of the common citizens of the country.
An independent evaluation by the World Bank shows that buyers on GeM save about 9.75% on the median price. This has led to huge savings of an estimated ₹1,15,000 crore in public procurement using taxpayer money. GeM procurement helped state-run NTPC save ₹2,000 crore using reverse auction in a ₹20,000 crore contract. GeM has also helped transparent and cost-effective procurement of defence equipment, vaccines, drones and services like insurance.
In a major relief to small enterprises, GeM has significantly reduced its transaction charges recently. Orders exceeding ₹10 lakh will incur lower transaction charge of 0.30%, while orders worth over ₹10 Crore will incur a capped fee of ₹3 lakh – a significant decrease from the previous ₹72.50 lakh.
Technology, AI – With a robust technological infrastructure, the platform is continuously evolving by offering new and easier ways to do business using technological solutions. GeM has deployed an AI-powered chatbot called “GeMAI” – a tool trained in conversational analytics and business intelligence. The smart chatbot is available in 8 vernacular languages and is equipped with latest technologies including voice command functionality to further enhance Ease of Doing Business on GeM portal.
GeM also offers financing products for MSE sellers. This gives collateral-free financing in less than 10 minutes for eligible purchase orders. The platform has introduced GeM Sahay 2.0, which serves as a single window to secure loans up to ₹10 lakh. More initiatives and technological solutions are in the works to make the platform more inclusive and competitive.
The GeM portal stands as a pivotal engine in driving India’s economic growth and development objectives of PM Modi. It will always run the extra mile to empower and uplift the marginalized sections of the society and promote entrepreneurship, while ensuring that taxpayer money is efficiently used to procure high-quality products at a competitive price
The writer is Union Minister for Commerce and Industry.
Courtesy PIB Srinagar
