The Government e-Marketplace (GeM) concluded FY 2025-26 with transactions worth ₹5.03 lakh crore, pushing its cumulative Gross Merchandise Value (GMV) past ₹18.4 lakh crore. As a core pillar of India’s Digital Public Infrastructure (DPI), GeM has digitized public procurement, achieving an average savings of approximately 8% for the exchequer.
Governance and Framework
- Administrative Anchor: Ministry of Commerce and Industry.
- Corporate Structure: Managed by GeM SPV, a Section 8 non-profit company (est. 2017) under the Companies Act, 2013.
- Regulatory Mandate: Rule 149 of General Financial Rules (GFR), 2017 makes procurement via GeM mandatory for Central Government Ministries/Departments.
- Scale: Over 1.36 lakh government buyer entities and 25 lakh registered sellers.
Inclusive Sourcing and Empowerment
- MSE Empowerment: Micro and Small Enterprises (MSEs) account for 72% of active sellers and 68% of total orders.
- Social Inclusion: Over 2.1 lakh women-owned MSEs secured orders worth ₹28,000 crore; SC/ST entrepreneurs surpassed ₹6,000 crore.
- Startups: 40,000+ startups utilized the platform, securing orders exceeding ₹19,000 crore.
Technological Interventions
- Efficiency Tools: Uses AI/ML for catalog validation, price discovery, and flagging collusive bidding.
- Procurement Mechanics: Employs Reverse Auction Systems for cost reduction and links with the Public Financial Management System (PFMS) for automated payments.
IASPOINT Booster Facts
- Make in India: GeM uses filters to prioritize Class-1 local suppliers (≥50% local content).
- Scope: Expanded from physical goods to complex services (cloud computing, consultancy).
- GovTech Impact: Contributes to India’s “Group A” ranking in the World Bank’s GovTech Maturity Index.
- Specialized Procurement: Supports Proprietary Article Certificate (PAC) buying under Rule 166 of GFR 2017 for single-source requirements.