What Happened
- Government e-Marketplace (GeM) facilitated orders worth ₹5.03 lakh crore in the financial year 2025-26, continuing its trajectory as India's primary public procurement portal.
- The platform's cumulative procurement has crossed ₹14.91 lakh crore across more than 3 crore orders since its inception in 2016.
- A new Global Trade Enabler (GTE) functionality is being rolled out to allow companies from India's Free Trade Agreement (FTA) partner countries — specifically the UAE and the UK — to participate in government procurement on GeM under defined conditions.
- Under current rules, foreign firms may only participate in contracts exceeding ₹200 crore, consistent with Public Procurement (Preference to Make in India) Order provisions.
- The platform is also expanding scope to include rate contracts and work contracts, which account for approximately 90% of global public procurement in value terms.
Static Topic Bridges
Government e-Marketplace (GeM)
GeM is a 100% government-owned online procurement portal launched on August 9, 2016, by the Ministry of Commerce and Industry. It enables direct procurement of goods and services by Central Ministries, State Governments, and Public Sector Enterprises. Under Rule 149 of the General Financial Rules (GFR) 2017, procurement of goods and services through GeM is mandatory for government buyers.
- Launched: August 9, 2016
- Nodal Ministry: Ministry of Commerce and Industry
- Governed under: Rule 149 of General Financial Rules (GFR) 2017
- Benefits: Transparency, efficiency, elimination of middlemen, MSE empowerment
- Over 11.25 lakh sellers have secured orders through the platform
Connection to this news: The ₹5.03 lakh crore milestone for 2025-26 demonstrates GeM's growing centrality in government procurement and its expansion toward international participation through the GTE feature.
Public Procurement Policy and Make in India
India's Public Procurement (Preference to Make in India) Order, 2017 gives preferential treatment to domestic manufacturers in government tenders. Foreign firms are generally excluded from contracts below ₹200 crore. However, India's FTAs — such as with the UAE (2022) and the UK (under finalization) — include government procurement chapters that create conditional market access for partner-country firms.
- Make in India Order (2017) mandates domestic preference in public procurement
- FTAs with UAE and UK include government procurement opening provisions
- Foreign participation allowed above ₹200 crore threshold
- WTO Agreement on Government Procurement (GPA): India is an observer, not a signatory
Connection to this news: The GTE functionality operationalises India's FTA commitments on government procurement — allowing UAE and UK companies to bid on GeM under treaty-mandated conditions.
Free Trade Agreements and Economic Diplomacy
India signed the India-UAE Comprehensive Economic Partnership Agreement (CEPA) in February 2022, which entered into force in May 2022. Negotiations for an India-UK Free Trade Agreement have been ongoing since January 2022. Both agreements include provisions for government procurement access, marking a departure from India's traditional exclusion of procurement from trade deals.
- India-UAE CEPA: Signed Feb 2022, effective May 2022 — India's first CEPA in over a decade
- India-UK FTA: Negotiations ongoing since January 2022
- Government procurement is a sensitive chapter in trade negotiations globally
- India has historically resisted binding procurement rules under WTO/GPA
Connection to this news: GTE on GeM is the technological mechanism to implement procurement commitments made in these FTAs, making GeM an instrument of both domestic efficiency and trade diplomacy.
Key Facts & Data
- GeM launched: August 9, 2016
- FY 2025-26 orders: ₹5.03 lakh crore
- Cumulative procurement since inception: ₹14.91 lakh crore across 3 crore+ orders
- Active sellers: 11.25 lakh+
- Foreign firm eligibility threshold: ₹200 crore (above this, FTA partners may participate)
- Rule 149 of GFR 2017: Mandates GeM use for government procurement
- India-UAE CEPA in force since May 2022
- GTE: Global Trade Enabler — new functionality for FTA partner company participation