The government’s emphasis on inclusivity and transparency has strengthened GeM as a key procurement channel for over 1.6 lakh government entities, including central and state ministries, public sector enterprises, panchayats, and cooperatives.
The Government e-Marketplace (GeM) has emerged as a game-changer in India’s public procurement system, achieving a remarkable milestone by surpassing ₹5 lakh crore in Gross Merchandise Value (GMV) before the end of the financial year 2024-25. This achievement, accomplished more than 18 days ahead of schedule, underscores the transformative impact of the Modi government’s digital procurement initiatives. Notably, GeM’s rapid expansion is evident from the fact that the leap from ₹4 lakh crore to ₹5 lakh crore was achieved in less than 50 days after crossing the previous benchmark on January 23, 2025.
Strengthening Market Accessibility Through Policy Reforms
One of the key drivers behind GeM’s success is the government’s proactive policy reforms aimed at enhancing market accessibility. Several recent initiatives have made the platform more inclusive and business-friendly, particularly for Micro and Small Enterprises (MSEs), startups, and women-led enterprises. These reforms include:
- Reduction in Transaction Charges: Lowering costs for sellers has improved affordability and encouraged greater participation.
- Vendor Assessment Fee Reduction: Streamlining registration for new vendors has simplified the onboarding process.
- Caution Money Requirement Reduction: Lowering entry barriers has made it easier for smaller businesses to participate in government procurement.
These measures have significantly boosted vendor registration, with over 22 lakh sellers and service providers actively participating on the platform as of February 13, 2025. The government’s emphasis on inclusivity and transparency has strengthened GeM as a key procurement channel for over 1.6 lakh government entities, including central and state ministries, public sector enterprises, panchayats, and cooperatives.
Empowering Startups, Women Entrepreneurs, and Youth Through SWAYATT
The year 2025 marks the sixth anniversary of SWAYATT (Startups, Women, and Youth Advantage Through eTransactions), a pioneering initiative aimed at integrating priority seller groups into the government procurement ecosystem. As of February 13, 2025:
- Over 29,000 startups have been successfully onboarded onto the GeM platform.
- 1.8 lakh Udyam-verified women-led businesses are actively participating in procurement processes, reinforcing the government’s commitment to fostering inclusivity and economic empowerment.
Through SWAYATT, GeM has become a catalyst for women entrepreneurs and young innovators, enabling them to access government contracts without unnecessary bureaucratic hurdles.
Leveraging Technology for Procurement Efficiency
Beyond policy reforms, the Modi government’s commitment to digital transformation has played a pivotal role in enhancing procurement efficiency. In the financial year 2024-25, GeM executed one of the largest cloud migrations undertaken by a government organization in India. This technological upgrade has:
- Improved platform scalability, ensuring seamless operations even with increasing transaction volumes.
- Strengthened security protocols to provide a reliable and safe procurement environment for both buyers and sellers.
Furthermore, the integration of AI-powered search capabilities through GeM AI has revolutionized the procurement experience. GeM AI continuously analyzes platform data to offer real-time, accurate, and credible insights to stakeholders, enabling faster and more informed procurement decisions.
Transparency, Fiscal Responsibility, and Economic Impact
The Government e-Marketplace is not just a procurement tool but a strategic platform for ensuring transparency, fiscal responsibility, and economic growth. Through its efficient and transparent processes, GeM has facilitated public savings exceeding ₹1,15,000 crore, reinforcing its role in optimizing government expenditure.
By eliminating inefficiencies and middlemen, GeM has positioned itself as a global benchmark for digital procurement. The platform’s transparency mechanisms, competitive pricing structures, and streamlined bidding processes have ensured that public funds are utilized efficiently, ultimately benefiting taxpayers and fostering national economic growth.
GeM: A Pillar of Digital Bharat and Viksit Bharat
The exponential growth of GeM aligns seamlessly with Prime Minister Narendra Modi’s vision of Digital Bharat and Viksit Bharat. The success of GeM is a testament to how technology-driven governance can revolutionize public procurement and create a level playing field for businesses across India.
As GeM continues its upward trajectory, it remains committed to:
- Enhancing inclusivity by bringing more startups, MSEs, and women entrepreneurs into the procurement ecosystem.
- Adopting cutting-edge technology to further streamline processes and improve user experience.
- Strengthening transparency and fostering trust in government procurement.
The Modi government’s emphasis on digital empowerment and ease of doing business has transformed GeM into a cornerstone of India’s economic and governance reforms. With its continued expansion, GeM is poised to play a crucial role in shaping India’s procurement landscape and contributing significantly to the nation’s journey towards becoming a $5 trillion economy.
The achievement of surpassing ₹5 lakh crore GMV before the end of FY 2024-25 is not just a milestone but a reflection of the Modi government’s visionary leadership and commitment to Make in India, Digital India, and Atmanirbhar Bharat. GeM has redefined public procurement, ensuring that businesses—regardless of their size—can thrive in a fair and transparent marketplace. With strong policy support, technological advancements, and a focus on inclusivity, GeM will continue to be a driving force in India’s journey towards economic self-reliance and prosperity.
