Maarg Manthan · Topic 20.7

Government e-Marketplace (GeM)

Current Affairs & Government Schemes › Government Portals, Apps and Digital Platforms · Topic 20.7

The Government e-Marketplace (GeM) is the national online public procurement portal of India, launched on 9 August 2016 by the Ministry of Commerce and Industry to let central and state government departments, public sector undertakings and other bodies buy goods and services from registered sellers in a transparent, cashless and paperless way. It replaced the rate contract system of the Directorate General of Supplies and Disposals and runs as a special purpose vehicle set up as a not-for-profit company. Rule 149 of the General Financial Rules, 2017 allows buying from GeM. As reported in April 2026, cumulative gross merchandise value crossed about Rs 18.4 lakh crore.

5 min read · UPSC Prelims · Current Affairs & Government Schemes · Government Portals, Apps and Digital Platforms

At a Glance

Launched 9 August 2016
Ministry Commerce and Industry
Legal base General Financial Rules, 2017, Rule 149
Replaced DGS&D rate contract system
Cumulative GMV About Rs 18.4 lakh crore by FY 2025-26, as reported
Exam link UPSC Prelims, Current Affairs and Government Schemes: Government Portals, Apps and Digital Platforms

Where Does It Fit?

GeM turns the state itself into a digital market and helps small firms sell to the Government. It belongs in this macro with the other platforms that deliver service through a shared digital layer, and it connects with the push for local manufacturing in the Atmanirbhar Bharat idea. Previous topic: National e-Governance Plan Payment mode Direct benefit transfer…">National Scholarship Portal. Next topic: CoWIN Platform.

What Are the Main Features of GeM?

Feature	Detail
Open marketplace	Sellers register and list products and services. Buyers search, compare and order, or run bids and reverse auctions
Transparency	Online bids, price comparison and reverse auctions reduce room for discretion
Payment	Payment is made through the platform, and a link with a public finance system gives quick payment to sellers
MSE and startup support	Features include a Startup Runway, a Women Entrepreneurs focus and preference to local sellers
Local content	Buyers can filter for products that meet local content rules, which supports Make in India
GeM Sahay	A scheme with banks to give working capital loans to sellers against orders on the platform

What Is the Legal and Institutional Base?

Origin: a committee led by a former Union official proposed a national e-market to cut corruption and delay in the older rate contract system of the Directorate General of Supplies and Disposals
Special purpose vehicle: GeM operates as a company set up under the Ministry of Commerce and Industry, with a chief executive officer
General Financial Rules: Rule 149 of the General Financial Rules, 2017 states that central ministries and departments may procure goods and services available on GeM, and made this mandatory for goods and services that GeM offers
Gross merchandise value: as reported in April 2026, cumulative value passed about Rs 18.4 lakh crore, with more than Rs 5 lakh crore in 2025-26. Some reports gave Rs 5.03 lakh crore for that year, which was lower than the previous year
MSE role: micro and small enterprises accounted for about 68 per cent of orders and about 47 per cent of value in 2025-26, as reported
Sellers: more than 25 lakh sellers with completed profiles were reported
States: state buyers used the platform more in 2025-26, with growth of about 38 per cent in state procurement, as reported
Anniversary: GeM completed ten years in August 2026, and some reports gave a cumulative value near Rs 20 lakh crore. These numbers differ by source

What Else Should You Remember?

Full form and alias: Government e-Marketplace, written GeM, is also described as the national public procurement portal
Latest status: the platform is active, with about Rs 18.4 lakh crore of cumulative orders reported at the end of FY 2025-26 and later reports of higher totals. Check the official GeM release for the exact number
Link with local manufacturing: the preference for local suppliers connects it to the self-reliance push in Atmanirbhar Bharat Abhiyan (Self-Reliant India)
Link with defence: defence and other large buyers also use it, as in Defence Indigenization and Atmanirbhar Bharat in Defence Production
Link with public finance: since procurement is a large part of Government spending, a transparent platform helps control cost
Inclusion: women-led firms, self-help groups, artisans and startups can sell without middlemen
Criticism: quality: buyers sometimes complain about quality, cheapest-bid selection and fake or low-quality listings
Criticism: sellers: sellers complain about delays in payment, commission and compliance burden, and fear of vendor lock-in
Criticism: access: small sellers with weak digital skills may find the platform hard, and big firms can dominate high-value categories
Way forward: quality checks, faster dispute handling, simple onboarding and fair treatment of all categories of sellers

Why Does It Matter for the Exam?

Launch and ministry: 9 August 2016, Ministry of Commerce and Industry
Replaced: rate contracts of DGS&D
Legal base: Rule 149, General Financial Rules, 2017
Feature: online bids, reverse auctions, MSE and startup support
Common errors: calling GeM a private marketplace, or giving the Ministry of Finance as its parent

As an analytical point, GeM improves transparency and price discovery in public buying and gives small firms access to Government demand. Its credibility rests on quality control and prompt payment to sellers.

Why Is This Topic Important?

Governance Transparent procurement
MSMEs Market access
Facts Launch, rule and ministry

What Came Next?

The next topic covers the CoWIN platform used in the Covid-19 vaccination drive. Next topic: CoWIN Platform.

Key People and Terms

GeM Government e-Marketplace
GFR General Financial Rules
GMV Gross merchandise value
DGS&D Directorate General of Supplies and Disposals
Reverse auction Sellers bid prices down
MSE Micro and small enterprise

Exam Corner

Points to Remember

Launched 9 August 2016.
Ministry of Commerce and Industry.
GFR Rule 149 allows buying from GeM.
Replaced DGS&D rate contracts.
Cumulative GMV about Rs 18.4 lakh crore.

Do Not Confuse With

GeM and Amazon Business A Government platform versus a private one
GeM and eNAM Public procurement versus a farm produce market
GeM and GeM Sahay The marketplace versus its credit support

Memory Hook

Buy by bid, pay by click: GeM keeps the state’s shopping clean and quick.

Mains Angle

Questions ask how e-procurement improves governance and supports MSMEs. These points give a balanced frame.

Benefits Transparency, MSME access, savings
Concerns Quality, payment delay, vendor access
Way forward Quality checks, dispute resolution, onboarding support

A Question You May Face

An original practice question, not a past paper question.

“Discuss how the Government e-Marketplace has improved transparency in public procurement and supported small enterprises, and point out its limitations.”

How to Answer

Context Old procurement system.
GeM Features and rules.
Gains Transparency and MSME share.
Limits Quality and payments.
Way Quality and support.

GS Relevance

Prelims: launch, ministry, legal base, features. GS Paper 2: e-governance, transparency in procurement. GS Paper 3: MSMEs, inclusive growth, public expenditure.

Frequently Asked Questions

What is the Government e-Marketplace (GeM)?

The Government e-Marketplace (GeM) is India's national online public procurement portal, launched on 9 August 2016 by the Ministry of Commerce and Industry. Government buyers purchase goods and services from registered sellers through bids and reverse auctions, which makes buying transparent, paperless and cashless, and gives small firms access to Government demand.

Which ministry runs GeM?

The Ministry of Commerce and Industry runs GeM through a special purpose vehicle set up as a not-for-profit company. It replaced the rate contract system of the Directorate General of Supplies and Disposals. Central ministries may buy from GeM under Rule 149 of the General Financial Rules, 2017, which treats it as the procurement route.

Who can sell on GeM?

Manufacturers, traders, service providers, startups, micro and small enterprises, women-led firms and self-help groups can register as sellers and list products or services after completing a profile. Sellers need business and tax details, and GeM Sahay offers working capital loans against orders. There is no fee for registering, though commissions apply on orders.

What is the role of MSEs on GeM?

Micro and small enterprises are a main group of sellers. As reported for 2025-26, they received about 68 per cent of orders and about 47 per cent of the value. Features such as preference for local sellers, the Startup Runway and the Women Entrepreneurs focus are meant to widen their share of public buying.

What is the latest status of GeM?

GeM is active. Reports in April 2026 gave a cumulative gross merchandise value of about Rs 18.4 lakh crore, with over Rs 5 lakh crore in 2025-26, and GeM completed ten years in August 2026. Figures differ between sources, so the latest official release from GeM or the Ministry of Commerce and Industry should be checked.

PYQ Practice — Statement Analysis

1 GeM was launched in August 2016.

True

The launch was on 9 August 2016.

2 GeM is run by the Ministry of Finance.

False

It is run under the Ministry of Commerce and Industry.

3 GeM replaced the DGS&D rate contract system.