Established in 2016, the Government eMarketplace (GeM) has emerged as a transformative force in public procurement, evolving into one of the largest Business-to-Government (B2G) procurement platforms globally. What began with a modest gross merchandise value (GMV) of INR 422 crore has surged to an impressive INR 4 lakh crore (approximately USD 50 billion) in 2024, marking a significant leap in its operational scale and impact.

GeM’s core mission is to streamline procurement processes for all levels of Indian government—central, state, and local bodies—through an emphasis on technology, innovation, and inclusivity. The platform has become a vital conduit between industry and government, significantly benefiting micro, small, and medium enterprises (MSMEs) across India.

At the Entrepreneur Summit 2024, Ajit B. Chavan, Additional CEO of GeM, shared insights into the platform’s rapid growth and its future trajectory. “This year, we are poised to hit INR 6 to 7 lakh crore. We could be the second-largest, and who knows, we might even become the largest in the world this year or next,” Chavan said, highlighting GeM’s pivotal role in government procurement.

Democratizing Public Procurement

One of GeM’s most notable achievements is its role in democratizing public procurement. Chavan emphasized that the platform has empowered micro and small enterprises from every part of the country to participate in large government contracts. With over 9 million registered sellers, and 285,000 actively transacting, MSMEs contribute 39% of the business value on GeM, showcasing its impact on enabling broader participation in government procurement.

Boosting Efficiency and Transparency

GeM has revolutionized procurement efficiency, reducing the cycle time from 42 days to just 7-10 days. The platform offers various procurement modes, such as direct purchases for items below INR 50,000 and L1 procurement for orders up to INR 10 lakh. This streamlined approach allows government buyers to make quick and cost-effective decisions while maintaining transparency.

The integration of Aadhaar and PAN has further refined the registration process, reducing redundancies and public procurement costs. According to a World Bank study, GeM has saved the government approximately 10% of the GMV, equating to nearly INR 1 lakh crore in savings.

Empowering Start-ups, Innovators, and MSMEs

GeM is also fostering innovation and entrepreneurship by onboarding 27,000 startups, contributing INR 25,000 crore in business. The platform aims to include a majority of the 125,000 DPIIT-registered startups, providing them with a unique opportunity to engage with government buyers.

To address capital challenges faced by MSMEs, GeM launched the GEM Sahay initiative, which facilitates collateral-free digital lending. This initiative offers loans up to INR 10 lakh within 10 minutes at interest rates under 10%, enhancing the ability of small enterprises to compete in the public procurement space.

Available in twelve Indian languages, GeM ensures increased accessibility for users across the country. Chavan concluded, “We have consciously gone out of our way to ensure that ‘Make in India’ flourishes. GeM is a platform where this vision is actively realized.”