Context
• The Government e Marketplace (GeM), India’s national portal for public procurement, commemorated its 8th Incorporation Day.

Government e-Marketplace (GeM)
• GeM serves as a unified online platform for the procurement of commonly used goods and services by various Government departments, organizations, and Public Sector Undertakings (PSUs).
• Launched in 2016, GeM is managed by a Special Purpose Vehicle (GeM SPV), which is a wholly government-owned entity under the Ministry of Commerce and Industry.
• Objective: To promote transparency, efficiency, and speed in public procurement processes.
• In 2017, the Ministry of Finance authorized and mandated the use of GeM for procurement by government entities.

Core Principles of GeM:

• Transparency: Relevant Information on sellers,goods, and services shall be easy to find and readily available for users
• Fairness: GeM allow sellers, big and small , to gain direct access to Government buyers.
• Inclusiveness: All sellers interested in conducting business with the Government shall be welcomed on the Platform

GeM: Revolutionizing Public Procurement in India

• GeM’s user base has tripled in recent years, now boasting over 1.64 lakh primary buyers and 4.2 lakh active sellers.

• The platform features more than 10,000 product categories and offers over 330 services.
• Its ecosystem includes over 10 lakh Micro and Small Enterprises (MSEs), 1.3 lakh artisans and weavers, 1.84 lakh women entrepreneurs, and 31,000 startups.

Expanded Role:

• GeM has played a vital role in supporting national priorities, facilitating major transactions such as ?5,000 crore for Akash Missile System equipment and ?5,085 crore for vaccine procurement.

• It also supports complex service procurements like drone-as-a-service for AIIMS, GIS and insurance coverage for over 1.3 crore individuals, and wet leasing of chartered flights and CT scanners.

Nationwide Reach:

• GeM is now implemented across all 36 States and Union Territories, with Uttar Pradesh leading in adoption.

• Eight states—including Maharashtra, Manipur, Gujarat, Himachal Pradesh, Assam, Uttarakhand, and Chhattisgarh—have made GeM usage mandatory.

Significance
• Transparent and Efficient Procurement: GeM minimizes human intervention in government purchasing, promoting transparency, efficiency, and faster transactions while reducing opportunities for corruption and delays.

• Cost Savings: Competitive bidding on the platform leads to significant cost reductions in government procurement.

• Support for MSMEs & Startups: A large share of orders on GeM comes from Micro, Small, and Medium Enterprises (MSMEs), helping to empower and grow small businesses.

• Fully Digital Process: From vendor registration to payment, every step is conducted online for convenience and speed.

• Security and Accountability: Robust data security measures, digital signatures, and comprehensive audit trails are integrated to ensure accountability and protect information.

Challenges
• Limited Awareness and Adoption: Many government officials and vendors—especially in rural areas and among MSMEs—lack sufficient awareness or training to use the platform effectively. Resistance to moving away from traditional procurement practices continues to be a major obstacle.

• Quality Control and Standardization: Ensuring uniform quality across a vast vendor base is difficult, compounded by the lack of standardized specifications for some products and services.

• Payment Delays: Although the platform is designed to support timely payments, delays in processing by government departments often discourage sellers.

• Logistics and Delivery: Vendors face significant logistical challenges when delivering goods across diverse and widespread regions.

• Technical Stability: Users sometimes encounter system crashes, slow response times, and bugs, particularly during periods of high traffic.

• Regulatory and Policy Inconsistencies: Variations in the implementation of procurement policies across departments lead to inefficiencies and disrupt smooth operations.

Government Initiatives to Enhance GeM

·SWAYATT (Startups, Women & Youth Advantage Through e-Transactions): This portal aims to simplify business operations and create direct market linkages in annual public procurement for startups, women entrepreneurs, Micro & Small Enterprises (MSEs), Self Help Groups (SHGs), and youth.

• Startup Runway 2.0: This initiative provides startups with a platform to showcase their innovative products and services to government buyers, facilitating their participation in public procurement. GeM has also established a dedicated marketplace category for all startups to list their offerings, regardless of DPIIT certification status.
• Womaniya Initiative: Designed to promote products crafted by women entrepreneurs and women-led self-help groups (WSHGs), this initiative highlights the contributions of women in the marketplace.
• Collaboration with MSME Ecosystem: GeM is partnering with various stakeholders within the Micro, Small, and Medium Enterprises (MSME) sector, with a special emphasis on entrepreneurs from Scheduled Caste (SC) and Scheduled Tribe (ST) communities to foster inclusive growth.
• The SARAS Collection: This exclusive collection features exquisite handcrafted items, including handicrafts, handloom textiles, office décor, furnishings, accessories, event souvenirs, and personal hygiene products, sourced from top-tier SHGs across India.

Conclusion

• GeM’s strategic initiatives have played a pivotal role in simplifying business processes and increasing participation in government procurement. As the platform continues to evolve, it remains dedicated to its vision of building a sustainable, transparent, and competitive marketplace, thereby advancing India’s journey towards inclusive and efficient public procurement.