Government e Marketplace: Revolutionising Public Procurement in India

Introduction

Government e Marketplace (GeM) is India’s largest e-marketplace for government buyers, including Central & State Ministries / Departments, Central & State Public Sector Enterprises, Autonomous Institutions & Local Government bodies including Panchayats & Cooperatives.

With more than 23 lakh active sellers and service providers including, Micro and Small Enterprises (MSEs), Women-led enterprises, Startups, Self-Help Groups, etc., the Government e marketplace is revolutionising the public procurement domain in India by enabling sellers and service providers across India with ‘Access to Market’ without any intermediaries.

Since its inception in 2016, GeM has enhanced the ease of doing business and promoted economic inclusion by digitalising the entire public procurement procedure. GeM has remained steadfast in its dedication to simplifying user experience by leveraging the latest tech innovations such as Artificial Intelligence (AI) and Machine Learning (ML).

Today, GeM stands as the world’s second-largest public procurement portal by order volume — a remarkable milestone achieved within just a few years of its launch in 2016. Leveraging advanced technology and a user-centric platform, GeM is revolutionizing India’s public procurement ecosystem by making it more efficient, transparent, and inclusive.

Here are 6 transformative ways in which GeM is redefining India’s public procurement landscape, making it more efficient, transparent and inclusive.

How GeM is Revolutionising Public Procurement

GeM Registration: A Fully Digital & Inclusive Process

The GeM registration process is fully digital, enabling both sellers and buyers to seamlessly join the National Public Procurement Portal and access opportunities across India.

To foster inclusivity, GeM minimises barriers to entry, particularly for Micro and Small Enterprises (MSEs), by streamlining GeM seller registration into a simple three-step process. Sellers can register on GeM portal, list their products or services and immediately begin participating in government tenders.

The Government e marketplace also allows other registered enterprises that do not fall under the particular category to view these opportunities by logging into their accounts, further enhancing transparency.

For buyers, a competitive e-marketplace like GeM enhances efficiency and drives greater public savings. More than 1.6 lakh government buyers have completed GeM buyer registration, gaining access to a vast and diverse supplier base. The portal embodies a one-stop shop for all procurement needs of government buyers by providing access to ~11,000 product categories and more than 300 service categories, simplifying even large-scale procurement.

Ease of Doing Business

GeM’s policy reforms focus on making public procurement more inclusive, efficient and accessible for sellers and service providers. With its fully digital, paperless and cashless framework, the platform removes intermediaries and administrative burdens, enabling businesses to participate seamlessly from anywhere in India.

A strategic revision in transaction fees on GeM has significantly reduced operational costs for sellers, marking a major step toward a more inclusive and business-friendly marketplace. Nearly 97% of all transactions on the platform are now free of any transaction charges. For the remaining, the fees have been substantially lowered — by 33% to 96% — with a maximum cap of ₹3 lakh for orders exceeding ₹10 crore, down sharply from the earlier ceiling of ₹72.5 lakh.

This reform not only eases the cost of doing business but also reinforces the Government’s commitment to reducing transaction overheads and fostering broader market participation. It is particularly impactful for Micro and Small Enterprises (MSEs) and grassroots-level entrepreneurs, helping address persistent “Access to Market” challenges.

By simplifying entry barriers and streamlining procurement processes, GeM is empowering a wider spectrum of businesses to participate in public procurement. These reforms directly enhance the ease of doing business, paving the way for a more equitable, efficient, and growth-oriented marketplace — and contributing meaningfully to the vision of a self-reliant India.

How GeM leverages Augmented Reality

As a portal, GeM goes beyond digitalisation, bringing the best of the newest innovations in technology to its users. One such innovation is Augmented Reality (AR), which provides buyers with a more interactive and immersive product exploration.

GeM has further enhanced the public procurement experience by incorporating Augmented Reality (AR) into its platform. In collaboration with a third-party provider, GeM has introduced QR codes for 300 products, enabling government buyers to easily access 3D models in AR.

By scanning these QR codes on the GeM portal, users can view, resize, zoom, and rotate 3D models directly on their mobile devices. GeM offers an interactive and immersive product exploration experience by enabling its users to place virtual models in real-world environments using their device’s camera.

24/7 AI-Driven Chatbot Assistance with GeMAI

GeM has been leveraging the latest technologies in its journey, including generative AI. It is the first public sector and government platform to have deployed a generative AI based engine to help GeM users with their queries through the GeMAI chatbot. Users can text or even talk to it in 10 Indic languages! Users’ feedback is logged and studied to continuously enhance their satisfaction. The AI engine knowledge base is updated on near real-time basis, providing the latest information to the users on GeM policies and offerings. Besides the general-purpose queries, it even allows users’ issue tickets to be created through the chat engine itself and also provides their status.

Nurturing Hyper-Local Economic Ecosystems

GeM is fostering self-reliance and strengthening India’s hyper-local economy by amplifying business-to-government (B2G) opportunities for small-scale sellers through flagship initiatives like SWAYATT(Startups, Women and Youth Advantage Through e-Transactions), Startup Runway and Womaniya.

With dedicated storefronts that promote the national initiative #VocalForLocal, sellers / service providers across India can list their offerings, ensuring greater visibility among government buyers.

By eliminating intermediaries, GeM empowers hyper-local manufacturers, artisans, weavers and Farmer Producer Organisations (FPOs) to directly participate in public procurement, creating a level playing field and driving economic inclusion. Currently, MSEs contribute nearly 40% of GeM’s total order value.

Aligned with key government initiatives like Make in India, ODOP (One District One Product) and the promotion of Millets, GeM facilitates nationwide participation in public procurement. With a strong digital infrastructure and progressive policies, it continues to transform India’s procurement landscape, unlocking new growth avenues for underrepresented seller segments.

Capacity-building through Free GeM Training

GeM understands the significance of empowering sellers / service providers of all sizes and offers various resources to help them navigate the platform seamlessly. Through its online structured and multilingual GeM training modules and exclusive online and offline workshops, GeM enables registered users to leverage its full potential by educating sellers / service providers about the platform’s unique features.

Through GeM training courses available in 12 Indian languages, GeM ensures sellers can access the information they need in their preferred language from anywhere in India.

Head over to https://elearning.gem.gov.in/ to sign up for these courses!

Conclusion: Innovation for Inclusion

Government e Marketplace (GeM) is more than just a procurement platform-it is a catalyst for India’s economic transformation.

With a commitment to empowering small businesses, promoting financial inclusion and driving public savings for government buyers, GeM is paving the way for a more streamlined and accessible procurement ecosystem. Its innovation-first approach not only seeks to enhance the user experience but also to make the e-marketplace more accessible across all user levels.

GeM is streamlining public procurement processes by replacing obsolete procurement processes through its digital-first approach thereby paving the way for an ecosystem that is accessible, future-ready and a driving force for a self-reliant India.