Context:
• The Government e-Marketplace (GeM) has recorded a total Gross Merchandise Value (GMV) of ₹18.4 lakh crore, surpassing ₹5 lakh crore in FY 2025–26, indicating its growing significance in government procurement activities.
Key Highlights:
- About GeM Portal
• GeM is India’s national public procurement platform, launched in 2016 by the Ministry of Commerce & Industry
• It facilitates procurement for:
- Central & State Government Ministries
- Departments and PSUs
- Autonomous bodies
- Features of GeM
• Fully digital, paperless and cashless platform ensuring end-to-end procurement solutions
• Incorporates AI-powered tools for improved efficiency
• Provides multilingual Learning Management System (LMS) for accessibility
• Features:
- Voice-enabled navigation
- Region-specific training modules
• Enhances participation of MSMEs, startups, and remote sellers
- Objectives of GeM
• Improve efficiency, transparency, and speed in public procurement
• Enable multiple procurement methods:
- Direct purchase
- E-bidding
- Reverse e-auction
• Ensure mandatory procurement by government entities
• Promote: - Efficient price discovery
- Economies of scale
- Best practices dissemination
- Significance
• Strengthens digital governance and transparency
• Boosts ease of doing business for MSMEs and startups
• Reduces corruption and intermediaries in procurement
• Enhances fiscal efficiency in public spending
Relevant Prelims Points:
• Launched: 2016
• Nodal Ministry: Ministry of Commerce & Industry
• Nature: Online public procurement portal
• GMV (Gross Merchandise Value): Total value of goods/services transacted
• Eligible participants:
- Proprietorship firms, MSMEs, startups, companies, service providers
• Key features: - AI integration
- Cashless and paperless transactions
- Reverse auction mechanism
Relevant Mains Points:
• GeM contributes to transparent and accountable governance
• Supports Digital India and e-governance reforms
• Promotes inclusive growth by enabling MSME participation
• Enhances public procurement efficiency and cost-effectiveness
• Challenges:
- Digital literacy gaps
- Need for wider adoption at local levels
- Way Forward
• Strengthen capacity building and awareness among small sellers
• Expand local language support and digital infrastructure
• Ensure integration with other government platforms
• Promote data-driven procurement decisions
UPSC Relevance:
• GS Paper 2 – Governance, E-Governance, Transparency
• GS Paper 3 – Economy, Digital Infrastructure, MSMEs