Transforming Public Procurement Through Digital Governance

 

The Government e-Marketplace (GeM) has transformed public procurement by replacing manual, fragmented processes with a transparent, technology-driven digital platform. By digitising the entire procurement lifecycle, GeM has improved efficiency, transparency and accountability while reducing transaction costs. Dedicated initiatives for MSEs, startups, women entrepreneurs and socially disadvantaged enterprises have expanded access to government markets, making procurement more inclusive. As a key pillar of India's Digital Procurement Ecosystem, GeM supports Digital India, Make in India, Aatmanirbhar Bharat and Ease of Doing Business.

 

Public Procurement in the Digital Age

Every year, Governments procure goods and services worth thousands of crores across diverse sectors. From medical equipment and classroom furniture to transport infrastructure and digital solutions, procurement supports nearly every aspect of public administration.

Traditional procurement often involved paperwork, multiple approvals and lengthy tendering, limiting efficiency and transparency. To transform this system, the Government launched the Government e-Marketplace (GeM) on 9 August 2016.

From Conventional Procurement to a Digital Marketplace

Conceived as a transformative reform in public procurement, the GeM is a unified, end-to-end digital platform. It enables government buyers to procure goods and services through a secure, paperless, cashless and contactless ecosystem. It brings together buyers and sellers on a common online marketplace, making procurement more transparent, efficient and competitive.

The platform was developed after studying global best practices, including leading public procurement systems in countries such as the United States and South Korea. It leverages digital technology to simplify and standardise the procurement process. Its implementation was further strengthened through amendments to the general financial rules, which enabled government organisations to procure through the platform.

GeM serves a wide range of government buyers, including Central and State Ministries, Departments, PSUs, Autonomous Bodies, local bodies, Panchayats and Cooperatives. The platform digitises the complete procurement lifecycle- from seller registration and product listing to bidding, contract award, order fulfilment and payment. This ensures greater transparency, accountability and ease of doing business.  

Learn more about GeM's initiatives, innovations and impact.

Building a Transparent Procurement Ecosystem

Transparency lies at the core of GeM's procurement framework. The platform enables fair competition, standardised processes and data-driven decision-making across government procurement. Government buyers can procure through direct purchase, comparison, electronic bidding and reverse auctions, depending on their requirements. Digital records, real-time monitoring and automated workflows improve accountability while reducing discretionary decision-making.

To support informed decision-making, GeM offers a range of data-driven tools and integrated services.     

• Did You Know? Department of Military Affairs has crossed ₹1.35 lakh crore in cumulative GMV as on 06 August 2026. Defence procurement contributed over 14.93% of GeM's cumulative GMV as on 6th August 2026.

  Buyers can access the GeM Availability Report and Past Transaction Summary to assess product availability and previous procurement trends before making purchases outside GeM.
• Business analytics features provide insights such as the Last Purchase Price, price trends and departmental procurement history. This enables buyers to make informed and cost-effective procurement decisions.
• The integration with the Central Public Procurement Portal (CPPP) provides a single access point for government tender information on various procurement made across the country.
• The functionalities of the Indian Railway Electronic Procurement System (IREPS) and the Defence Public Procurement Portal (DPPP) are being integrated with GeM to create a unified and interoperable public procurement ecosystem.   

Expanding the Scale of Public Procurement

GeM connects more than 1.37 lakh government buyer organisations with nearly 25 lakh sellers and service providers, facilitating cumulative procurement worth over ₹20 lakh crore+.

Beyond facilitating transactions, GeM has become an important pillar of India's Digital Procurement Ecosystem. The platform supports Digital India, Make in India, Aatmanirbhar Bharat, Vocal for Local and Ease of Doing Business. It provides a comprehensive digital marketplace with over 10,660 product categories and 350 service categories, meeting diverse government procurement needs. The marketplace includes medical equipment, furniture, computers, fire safety equipment and handicrafts, alongside services such as transport, catering, vehicle hiring and human resource services. Multiple procurement modes, integrated payment systems and online contract generation further ensure transparent, efficient and end-to-end digital procurement.

GeM has also continued to evolve through policy reforms, technology upgrades and strategic partnerships. Recent reforms include Rate Contracts for recurring purchases and removal of Caution Money requirements for sellers. These reforms have simplified procurement and improved the ease of doing business.

GeM has forged strategic partnerships with government institutions, financial organisations, industry bodies and international agencies to make public procurement more innovative, transparent and inclusive.

• Innovation: In April 2025, GeM partnered with the Indian National Space Promotion and Authorization Centre (IN-SPACe) for space-tech and Drone Federation India (DFI) for drone procurement.
• Finance: Under the GeMSahay initiative, the partnership with Union Bank of India improves access to collateral-free working capital for registered sellers and service providers.

GeMSahay   GeM Sahay is a dedicated mobile app that enables eligible proprietorship sellers on GeM to access instant, collateral-free working capital loans. It enables quick, paperless financing without requiring buyer consent, helping sellers fulfil government orders seamlessly.

• Capacity Building: MoUs with Arun Jaitley National Institute of Financial Management (AJNIFM), CareEdge Ratings, National Centre for Goods Governance (NCGG) and Indian Institute of Public Administration (IIPA) support research, training, knowledge exchange and policy development in public procurement.
• Compliance: Integration with Employees’ Provident Fund Organisation (EPFO) to enhance transparency and strengthen compliance of the Acts in manpower outsourcing services.
• Inclusion: The partnership with UN Women promotes women-led enterprises through the Womaniya initiative, encouraging gender-responsive and inclusive public procurement.

Empowering Women, Startups and Socially Marginalised Entrepreneurs

To strengthen last-mile access to government procurement, the GeM has partnered with Common Service Centre e-Governance Services India Limited (CSC-SPV) in June 2026. Under the partnership, 50 GeM Suvidha Kendras will be established on a pilot basis across select States and Union Territories.

The GeM Suvidha Kendras provide awareness, seller registration, vendor assessment, catalogue creation, capacity building and grievance redressal, along with local handholding. They aim to enhance the participation of MSEs, women and SC/ST entrepreneurs, startups, artisans, weavers, SHGs and local manufacturers in government procurement.

The platform has expanded market access for traditionally underrepresented groups by enabling transparent, technology-driven participation in government procurement.

• Micro and Small Enterprises (MSEs): Over 11 lakh registered MSEs executed more than 51 lakh orders worth over ₹2.36 lakh crore.
• Women-led Enterprises: More than 2.1 lakh registered women-led MSEs secured procurement worth over ₹28,000 crore.
• SC/ST Enterprises: Procurement exceeded ₹6,000 crore, registering nearly 28% annual growth.
• Startups: Procurement crossed ₹19,000 crore, recording over 36% annual growth.

To strengthen inclusive participation, GeM has introduced dedicated initiatives including SWAYATT, Startup Runway 2.0, Womaniya and the SARAS Collection. These initiatives improve market access for startups, women entrepreneurs, Self Help Groups (SHGs), artisans and other underserved communities.

SWAYATT Initiative: SWAYATT (Startups, Women & Youth Advantage through e-Transactions) is GeM's flagship initiative promoting inclusive public procurement. It enables startups, women entrepreneurs, MSEs and SHGs to sell to Government buyers. Womaniya: The initiative showcases products made by women entrepreneurs and Women Self-Help Groups (WSHGs) on GeM. It helps them access Government procurement opportunities and expand their market reach. Read more about Womaniya here. SARAS Collection: Under a dedicated marketplace category, the Saras Collection showcases daily utility products made by rural self-help groups (SHGs) and aims to provide SHGs in rural areas with market access to Central and State Government buyers. Startup Runway 2.0: It provides startups a dedicated marketplace to showcase innovative products and services to government buyers and engage in public procurement.

Towards Smarter Public Procurement

As GeM begins its 11th year, the focus is shifting towards a smarter and more integrated public procurement ecosystem. Artificial intelligence and wider participation will further strengthen transparency, efficiency and governance. By connecting government demand with local enterprises, GeM advances Vocal for Local, Make in India and inclusive economic growth. GeM continues supporting India's journey towards a digitally empowered and self-reliant economy.

References

Ministry of Commerce & Industry

https://www.pib.gov.in/PressReleasePage.aspx?PRID=2201284&reg=3&lang=2

https://www.pib.gov.in/PressReleasePage.aspx?PRID=2274872&reg=3&lang=1

https://doe.gov.in/files/circulars_document/FInal_GFR_upto_31_07_2024.pdf

https://assets-bg.gem.gov.in/resources/upload/shared_doc/gem-chronicle-december-2025-edition_1766729032.pdf

https://eprocure.gov.in/cppp/newsletterdisp/kbadqkdlcswfjdelrquehwuxcfmijmuixngudufgbuubgubfugbububjxcgfvsbdihbgfGhdfgFHytyhRtNjI2

https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=1897442&reg=48&lang=2

https://static.pib.gov.in/WriteReadData/specificdocs/documents/2021/mar/doc202131041.pdf

 

PIB Archives

https://www.pib.gov.in/PressNoteDetails.aspx?NoteId=156611&ModuleId=3&reg=3&lang=1

https://www.pib.gov.in/factsheetdetails.aspx?id=148586&reg=48&lang=2

Click here to see PDF

*****

PIB Research

(Release ID: 2296546) Visitor Counter : 394