Why in news?
The Government e Marketplace (GeM) achieved a record gross merchandise value of over ₹5 lakh crore during the financial year 2025–26, pushing its cumulative procurement to more than ₹18.4 lakh crore since the platform’s launch. The Ministry of Commerce and Industry credited the milestone to widespread adoption by central ministries, state governments and public sector undertakings.
Background
Launched on 9 August 2016, GeM is a fully digital, cashless and paperless portal that streamlines the public procurement process. It allows government buyers to procure goods and services from registered sellers through e‑bidding, reverse auctions and demand aggregation. GeM replaced the Directorate General of Supplies and Disposals and is mandatory for most government purchases under Rule 149 of the General Financial Rules 2017.
Key features
- Inclusive participation: The portal hosts over 68 000 buyer organisations and more than 60 lakh sellers and service providers, including micro and small enterprises (MSEs), women‑led businesses, startups and self‑help groups. MSEs account for a significant share of orders, supporting local entrepreneurship.
- Technology‑driven tools: GeM uses artificial intelligence and real‑time analytics to suggest optimal procurement modes, prevent collusion and detect anomalies. The marketplace supports direct purchase for low‑value orders, as well as competitive bidding for higher values.
- Wide product range: Buyers can source everything from office stationery and vehicles to complex services like cloud computing, consulting and building maintenance. The platform enables demand aggregation to negotiate better prices.
- Transparency and efficiency: Automated workflows, electronic payments and online tracking reduce processing time and curb opportunities for corruption. Comparative price charts and seller ratings assist buyers in making informed decisions.
Impact
GeM has become a cornerstone of government procurement in India. By simplifying processes and leveraging technology, it delivers savings for taxpayers and ensures timely delivery of goods and services. The record transactions in FY 2025–26 underscore the platform’s maturity and its role in supporting the “Make in India” initiative by providing a level playing field for local suppliers.
Source: Press Information Bureau, India Brand Equity Foundation, Wikipedia
