Backgrounder: GeM transforming public procurement

The Government e-Marketplace (GeM): what happened?

Every government office buys things: medicines, chairs, computers, vehicles on hire. Earlier this meant paper tenders, many approvals and long waits. GeM put the whole process on one online market, from seller registration to payment. As it enters its 11th year, PIB has set out what has changed.

• Buyers include Central and State ministries, PSUs, autonomous bodies, local bodies, panchayats and cooperatives.
• Buying modes: direct purchase, comparison, e-bidding and reverse auction.
• Tools such as Last Purchase Price, price trends and the GeM Availability Report help buyers.
• GeM is integrated with the Central Public Procurement Portal (CPPP); IREPS (Railways) and the Defence Public Procurement Portal are being integrated.
• Recent reforms: Rate Contracts for recurring purchases and removal of Caution Money for sellers.
• In June 2026, GeM partnered with CSC-SPV to set up 50 GeM Suvidha Kendras on a pilot basis.

How did GeM come about?

• It was designed after studying public procurement systems abroad, including those of the United States and South Korea.
• Amendments to the General Financial Rules enabled government bodies to buy through it.
• It is meant to be paperless, cashless and contactless, and to cut discretion through digital records and automated workflows.

Who gains from GeM’s inclusion drives?

What are GeM’s main initiatives?

How does a purchase move on GeM?

1. Seller registers and lists products
2. Buyer checks availability and past prices
3. Buyer picks a mode: direct, comparison, e-bid or reverse auction
4. Contract is generated online
5. Order is fulfilled and payment is made through the platform

Why does the Government e-Marketplace (GeM) matter?

What are the challenges in the Government e-Marketplace (GeM)?

• Several large buyers (Railways, Defence) still run their own portals; integration is under way.
• Small sellers and artisans need hand-holding to register and catalogue, which is why Suvidha Kendras are being piloted.
• Working capital is a pain point for small suppliers; GeMSahay addresses only eligible proprietorship sellers.
• Buying outside GeM still happens; buyers use availability reports before doing so.

What should be done next on the Government e-Marketplace (GeM)?

• Finish integrating IREPS and the Defence portal for one procurement system.
• Scale the 50 Suvidha Kendras beyond the pilot.
• Use AI and analytics to spot price outliers and improve buyer decisions.
• Keep widening the seller base among women, SC/ST entrepreneurs and SHGs.

What can Prelims ask on the Government e-Marketplace (GeM)?

• GeM launched on 9 August 2016; Ministry of Commerce and Industry.
• Buyers 1.37 lakh+, sellers nearly 25 lakh; GMV over ₹20 lakh crore.
• SWAYATT: Startups, Women and Youth Advantage through e-Transactions.
• GeMSahay: collateral-free working capital app (Union Bank of India).
• Womaniya: with UN Women; SARAS: rural SHG products.

How to write about the Government e-Marketplace (GeM) in Mains

Practice question (15 marks, 250 words): How has the Government e-Marketplace (GeM) changed public procurement in India? Discuss its role in transparency and in widening market access for small enterprises.

• Intro: GeM since 2016, scale in 2026.
• Transparency: digital lifecycle, buying modes, price tools.
• Inclusion: MSE, women, SC/ST, startup figures for 2025-26.
• Gaps: parallel portals, seller capacity, credit.
• Way forward: integration, Suvidha Kendras, AI.

What should UPPCS aspirants note?

• GeM buyers include panchayats and local bodies, so UP’s rural SHGs and ODOP artisans can sell through SARAS and Womaniya.