India's Gem commemorates nine fruitful years of revolutionizing government contracts and purchases
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GeM (Government e Marketplace), launched in August 2016 as part of the Digital India mission, has revolutionised government procurement in India over the past nine years. This digital platform enables online procurement of goods and services by government departments and public sector organisations, digitising and automating the procurement process.
Extensive Reach and Vendor Participation
By January 2025, GeM had registered over 7.64 lakh sellers and service providers, covering 616+ cities across India. This extensive reach and vendor participation signify the platform's wide adoption and scale.
Transparency and Efficiency
GeM has introduced transparency by providing an open, accessible platform for government procurement, minimising manual interference, and curbing corruption. Its digital framework and workflow automation have accelerated procurement timelines.
Cost Savings and Bulk Procurement
GeM facilitates price discovery through competitive bidding and bulk purchasing, enabling the government to secure better prices and assured discounts on products.
Standardization and Ease of Use
GeM has brought standardisation in terms of product and service catalogues, vendor registration, payment mechanisms, and contract management. This simplifies the procurement process for both government users and vendors.
Increased Accessibility for MSMEs
The marketplace facilitates the participation of Micro, Small, and Medium Enterprises (MSMEs) by providing a direct channel to government buyers, thereby promoting inclusive growth and innovation in public procurement.
Integration with Other Digital Initiatives
Being a part of the wider Digital India program, GeM benefits from integration with payment layers like Unified Payments Interface (UPI), tax networks like GSTN, enhancing compliance and operational efficiency.
A Citizen-Centric, Data-Driven, and Inclusive Ecosystem
GeM officials have reaffirmed their commitment to transforming public procurement into a citizen-centric, data-driven, and inclusive ecosystem. Key reforms introduced by GeM include the elimination of caution money for sellers, rationalisation of vendor assessment fees, and a significant reduction in transaction charges.
The 9th Foundation Day of GeM was not just a celebration of numbers, but of the people. GeM connects remote and underserved entrepreneurs to government buyers, bringing them into the mainstream procurement system. This year's GeM Foundation Day celebrations focus on the theme Ease, Access, and Inclusion.
Mihir Kumar, CEO of GeM, stated that the focus is to make GeM more inclusive and accessible for all types of enterprises. GeM has bridged the gap between policymaking and grassroots participation, merging transparency with transformation. In 2024-25, GeM had a gross merchandise value (GMV) of Rs 5.4 lakh crore, a testament to its success in streamlining public procurement in India.
- The extensive reach and vendor participation on GeM, with over 7.64 lakh sellers registered across 616+ cities in India, signifies its wide adoption and scale in the business news industry.
- GeM's digital platform, which has eliminated caution money for sellers and reduced transaction charges, is part of a larger commitment to creating a citizen-centric, data-driven, and inclusive ecosystem in the opinion of many industry analysts.
- Startups and small businesses, particularly Micro, Small, and Medium Enterprises (MSMEs), benefit from the increased accessibility provided by GeM, allowing them to participate directly in government procurement and foster innovation in the finance and technology sectors.
- By facilitating bulk procurement and competitive bidding, GeM has enabled the government to secure better prices and discounts on goods, leading to significant cost savings in the health and business sectors.
