How the Government e-Marketplace (GeM) is Transforming the Procurement Landscape in India

The Government e Marketplace (GeM) serves as the Public Procurement Portal for all Central Government and State Government Ministries, Departments, Public Sector Units (PSUs), and affiliated organisations. GeM works to improve the transparency, efficiency, and inclusiveness of government procurement. GeM has the following advantages: It is a centralized and unified public procurement platform for state buyer organisations and suppliers of goods and services, and it is accompanied by:

• Policy changes for the current public procurement ecosystem

• Increased Inclusion and Ease of Doing Business (EoDB) with the

• Process standardization supported by a regulatory framework

• A fully automated system enabled by technological breakthroughs

For a long time, India, which pays an estimated 20% of its GDP on public procurement, has struggled with the issues of decentralized purchase of regularly used commodities.

While small-batch purchases lose the advantages of economies of scale, they are also vulnerable to fraud because it is difficult to track thousands of little transactions. Small producers, too, struggle to connect with buyers in various regions of the country without incurring additional fees through intermediaries.

To solve this issue, GeM was officially launched in August 2016 and had 55.9 lakh dealers and 65,039 buyers. So far, 1.25 crore orders with a transaction value of Rs 3.44 lakh crore have been submitted. According to the most recent platform data, micro and small sellers accounted for 8.30 lakh of the total merchants, accounting for 55.31 percent of the order value.

This Business to Government (B2G) technology has since eliminated numerous stages of human, periodic verification, and judgment, resulting in remarkable savings in government procurement lead-time. This has also opened up appealing new alternatives for suppliers by removing middlemen and ensuring timely payment release. 

The online marketplace has also aided in the promotion of entrepreneurship and the creation of new jobs. In less than two years, the platform has increased market access for micro and small businesses and entrepreneurs, increasing the number of potential suppliers.

GeM now serves 138,000 merchants and 27,000 buyer organizations with over 469,000 items and services. So far, 730,000 orders have been placed, totaling Rs. 115 Billion (US$ 1.7 Billion). The majority of India’s states have also signed Got with GeM to use this platform for widely used commodities.

The e-marketplace has set a lofty objective of reaching a Gross Merchandise Value (GMV) of 4-5% of India’s GDP. Savings of 15-25% on this volume of procurement will free up substantial sums for the government to employ to fund poverty reduction and development alleviation projects.

GeM received the South Asia Procurement Innovation Award in 2016 for its performance and replicability. It is now seeking regional and worldwide cooperation to assist other countries in replicating its success.

The World Bank is happy to have been involved in GeM throughout its development. Many Financial institutions supported and acknowledged projects in India benefit from the benefits it offers over traditional means of procurement.

Its purpose is to bring all government buyers together on a consistent online platform for the purchase of regularly used goods and services.

GeM stands as a major contributor to generating India’s economy and employment.

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