GeM (Government e-Marketplace) has processed over ₹4 lakh crorein orders since its 2016 launch, growing from a pilot to the world's largest public procurement platform. With 60+ lakh sellers and mandatory adoption across central government, GeM has fundamentally reshaped how government buys goods and services.
Key Milestones
- 2016 — GeM launched as a pilot replacing DGS&D for central government procurement
- 2017 — GFR 2017 made GeM mandatory for goods and services procurement by central government
- 2018 — state governments begin adopting GeM. Seller base crosses 10 lakh.
- 2020 — COVID-driven procurement (PPE, medical equipment) processed through GeM. Monthly GMV crosses ₹10,000 crore.
- 2023 — GeM 4.0 with AI-powered recommendations, better analytics, and enhanced vendor management
- 2025 — cumulative GMV crosses ₹4 lakh crore. 60+ lakh sellers registered.
What Changed for Vendors
- Equal access — any registered seller can list products and receive orders. No need for connections or middlemen.
- Transparent pricing — market average prices are visible. No information asymmetry.
- Faster payments — GeM tracks payment compliance. Target is 10 days post goods receipt.
- Rating system — buyer ratings create accountability. High-rated sellers get more visibility.
- MSE priority — Udyam-linked MSE filters help government buyers meet 25% procurement targets.
What Changed for Government Buyers
- Mandatory for goods and services — central government must procure common-use goods through GeM unless specifically exempted
- Audit trail — complete digital record of every purchase. CVC and CAG can review procurement decisions.
- Price comparison — system shows market prices, preventing overpriced purchases
- Faster procurement — direct purchase (under ₹25,000) can be completed in minutes vs weeks for traditional tenders
Limitations and Gaps
- Works contracts (construction) are not yet on GeM — still use CPPP and state portals
- Complex, customised procurement doesn't fit the catalog model well
- State government adoption varies — some states are fully on GeM, others partially
- Quality verification challenges — GeM is primarily a marketplace, not a quality inspection body