Why in News

The Government e-Marketplace (GeM) crossed a cumulative Gross Merchandise Value (GMV) of ₹18.4 lakh crore (approximately USD 197 billion) since its launch in August 2016, with FY 2025–26 contributing ₹5 lakh crore+ — the highest single-year GMV in GeM’s history. The milestone was announced by the Ministry of Commerce and Industry in April 2026, reflecting GeM’s transformation into the backbone of India’s public procurement system.


Key Milestones

Metric Figure
Cumulative GMV (all time) ₹18.4 lakh crore
FY 2025–26 GMV ₹5 lakh crore+ (record)
MSE share of FY26 orders (volume) 68%
MSE share of FY26 orders (GMV) 47.1%
MSEs registered on GeM 11 lakh+
Women-led MSE orders (FY26) ₹28,000 crore+
Women-led MSE order growth 28% YoY
State procurement growth (FY26) 38.3% YoY

About GeM — Government e-Marketplace

What is GeM?

GeM is India’s national public procurement portal launched in August 2016 under the Ministry of Commerce and Industry, designed to replace fragmented, opaque government purchasing with a unified, transparent digital marketplace.

How It Works

  • Government buyers (Central Ministries, PSUs, State departments) register on GeM and post procurement requirements
  • Sellers (MSEs, manufacturers, service providers) list products and services
  • Reverse auctions and direct purchases — buyers can compare prices, negotiate, and place orders directly
  • Mandatory for Central Government ministries above a threshold (DGS&D circular)

GeM vs. Traditional Procurement

Parameter Traditional (GeM predecessor) GeM
Price discovery Manual, opaque Real-time, competitive
MSE access Difficult (agents, middlemen) Direct registration
Delivery tracking Manual Digital, end-to-end
Payment cycle 30–90+ days 10 days target
Transparency Low High (public dashboards)

MSE and Women’s Inclusion — Why It Matters

MSE (Micro and Small Enterprises) on GeM

The Public Procurement Policy for MSEs, 2012 mandates that 25% of total Central Government procurement come from MSEs (minimum 4% from SC/ST-owned MSEs). GeM’s digital architecture has made this compliance easier:

  • 11 lakh+ MSEs registered (FY26)
  • 68% of order volume in FY26 went to MSEs
  • Reduces dependence on agents and government tender middlemen

Women Entrepreneurs

  • Orders to women-led MSEs: ₹28,000 crore+ in FY26 (28% YoY growth)
  • Women Entrepreneurship Platform (WEP) cross-links with GeM
  • Aligned with PM Vishwakarma and Stand Up India schemes

GeM’s Role in Digital Public Infrastructure

GeM is considered part of India’s broader Digital Public Infrastructure (DPI) stack alongside UPI, Aadhaar, and ONDC:

DPI Layer Platform Function
Identity Aadhaar Digital ID
Payments UPI Instant transfers
Commerce (private) ONDC Open network commerce
Procurement (public) GeM Government buying
Credit linkage PSB Loans in 59 Minutes MSME credit

UPSC Relevance

GS Paper 2 — Governance

  • e-Governance and digital transformation of public services
  • Transparency and accountability in public procurement
  • MSE policy — procurement mandates and implementation

GS Paper 3 — Economy

  • Public procurement as fiscal stimulus and MSME support tool
  • Ease of Doing Business improvement via digital portals
  • India’s export and supply chain resilience role of domestic procurement

Facts Corner

Item Fact
GeM launch August 2016
Ministry Ministry of Commerce and Industry
Cumulative GMV ₹18.4 lakh crore (~USD 197 billion)
FY26 GMV (record) ₹5 lakh crore+
MSE procurement mandate 25% of Central Govt purchases
MSEs registered 11 lakh+
MSE order share FY26 (volume) 68%
Women-led MSE orders FY26 ₹28,000 crore+
State procurement growth FY26 38.3% YoY
GeM’s role in DPI Alongside UPI, Aadhaar, ONDC