The Government e‑Marketplace (GeM) has emerged as a game-changer for India’s micro, small, and medium enterprises (MSMEs). Since its beginning, GeM has had a remarkable increase in Gross Merchandise Value (GMV), escalating from ₹422 crore in its initial phase to ₹5.43 lakh crore in 2025, indicating its expanding utilisation across central and state departments.
This digital procurement platform has notably democratised access to government contracts, facilitating the growth of small businesses through straightforward and transparent bidding procedures.
Targeted Outreach and State-Level Partnerships
The platform’s success is based on its focused efforts to onboard micro and midsize businesses (MSEs), according to Ajit B. Chavan, Additional CEO of GeM. GeM guarantees that rural businesses and regional entrepreneurs are not left behind by working with state governments, trade associations, and industry groups.
Several state governments have actively promoted GeM registration among local artisans, small manufacturers, and service providers, especially under initiatives like ‘One District, One Product’ (ODOP) and tribal product inclusion. These efforts have expanded the seller base to include over 14 lakh MSEs, many of whom are first-time digital sellers.
Transparency, Ease, and Speed
GeM revolutionised government procurement by introducing end-to-end digitisation of procurement and payment, real-time price discovery, e-bidding, reverse auctions, and analytics-based buying. This assures fair competition for small vendors, boosts government pricing efficiency, and decreases corruption and delays. Furthermore, automated systems have improved payment deadlines by reducing the time it takes to transfer payments to vendors.
A Win for ‘Vocal for Local’
GeM’s success has been closely linked to the government’s “Atmanirbhar Bharat” and “Vocal for Local” programs. The platform helps small firms, artists, self-help groups, and startups compete on an equal basis with larger enterprises by providing a nationwide marketplace.
The platform’s appeal has been further expanded with the addition of categories like eco-friendly products, tribal goods, Khadi, and handicrafts.
The Road Ahead
With over 1 crore products listed and thousands of daily transactions, GeM is poised to play an even bigger role in inclusive economic growth. Upcoming plans include AI-enabled vendor matching, voice-based navigation in regional languages, and mobile-first features to deepen MSME engagement in remote areas.
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