What Happened
- The Government e-Marketplace (GeM) has achieved a cumulative Gross Merchandise Value (GMV) of ₹18.4 lakh crore, including ₹5 lakh crore transacted in FY 2025-26 alone.
- More than 11 lakh Micro and Small Enterprises (MSEs) are registered on GeM; they received over 51 lakh orders cumulatively in FY26, representing growth exceeding 20% over the previous year.
- MSEs accounted for 68% of total orders and 47.1% of total GMV on the platform, demonstrating the platform's inclusivity.
- Women-led enterprises, SC/ST businesses, and startups each posted strong growth — startups registered the highest year-on-year increase at 36%.
- Over 2.1 lakh women-led MSEs received orders exceeding ₹28,000 crore (up ~28%), while SC/ST MSEs received orders valued over ₹6,000 crore (up 28%).
Static Topic Bridges
Government e-Marketplace (GeM): Origin, Legal Basis, and Architecture
GeM was launched on August 9, 2016, by the Ministry of Commerce and Industry, with the objective of creating an open, transparent, and efficient platform for government procurement of goods and services. It was built in approximately five months. Procurement through GeM was made mandatory for all central government ministries, departments, and public sector enterprises under Rule 149 of the General Financial Rules (GFR), 2017, added by the Ministry of Finance.
- Operated by a Special Purpose Vehicle (SPV) under the Ministry of Commerce and Industry.
- Offers multiple procurement modes: direct purchase, e-bidding, e-reverse auction, and direct reverse auction.
- Uses ML-based catalogue validation, real-time transaction monitoring, and analytical tools to flag abnormal pricing, collusive bidding, and buyer-seller collusion.
- Integrated with treasury and public financial management systems to ensure order placement only after contract amounts are blocked and payments are released promptly upon delivery.
- The World Bank assessed average buyer savings on GeM at approximately 9.75% on median price compared to prevailing market rates.
Connection to this news: The ₹18.4 lakh crore GMV milestone signals GeM's transformation from a pilot portal into the backbone of India's public procurement system — a digital public infrastructure (DPI) layer with direct economic and governance impact.
Public Procurement and Transparency
Public procurement accounts for approximately 10–15% of India's GDP if all tiers of government are included, making it one of the largest categories of government activity and a significant source of corruption risk. Pre-GeM, procurement was fragmented, opaque, and subject to cartelisation. Centralised digital platforms reduce information asymmetry, improve competition, and create auditable records.
- Traditional procurement was governed by the Delegation of Financial Powers Rules and GFR — manual, paper-intensive processes with limited competition.
- The GeM model addresses three classic procurement failures: lack of price discovery, limited supplier access, and post-award opacity.
- GeM's three pillars are formally described as: Efficient (smooth operations), Transparent (fair practices), and Inclusive (open to all categories of sellers including MSMEs, startups, SHGs, and artisans).
- GeM also features Wome Entrepreneurship Portal (WEP) integration, Udyam registration linkage for MSME verification, and Startup India onboarding.
Connection to this news: The high share of MSEs (68% of orders) and the strong growth in women-led and SC/ST enterprise orders validate GeM's inclusive design, which is a model for how digital procurement can operationalise affirmative procurement policy.
Digital Public Infrastructure (DPI) and India Stack
GeM is part of India's broader Digital Public Infrastructure ecosystem — open, interoperable, and publicly governed digital platforms that enable efficient delivery of public services and economic transactions. India Stack includes Aadhaar (identity), UPI (payments), GSTN (taxation), DigiLocker (documents), and GeM (procurement) as distinct but interlinked layers.
- India's DPI approach has attracted global attention — the G20 under India's 2023 presidency adopted the Global DPI Framework.
- GeM's integration with GST Network, PAN, and Aadhaar enables vendor verification and tax compliance checks at the point of onboarding.
- GeM onboards individual artisans and Self-Help Groups (SHGs) directly, expanding the procurement pyramid beyond organised industry.
- The platform enables "Make in India" preferences by filtering products by local content percentage and compliance with the Public Procurement (Preference to Make in India) Order, 2017.
Connection to this news: GeM's GMV milestone is not just a financial figure — it represents the scale at which India's DPI layer can channel government demand toward inclusive, transparent, and formally-registered economic activity.
Key Facts & Data
- Cumulative GMV: ₹18.4 lakh crore (as of April 2026)
- FY 2025-26 GMV: ₹5 lakh crore
- Registered MSEs: over 11 lakh
- MSE share: 68% of orders, 47.1% of GMV
- Startup order growth (FY26): 36% year-on-year
- Women-led MSE orders: ₹28,000 crore+ (~28% growth)
- SC/ST MSE orders: ₹6,000 crore+ (28% growth)
- GeM launch date: August 9, 2016
- Legal mandate: Rule 149, General Financial Rules (GFR), 2017
- World Bank-assessed average buyer savings: ~9.75% on median price