NEW DELHI (India CSR): Prime Minister Narendra Modi spotlighted the transformative impact of the Government e-Marketplace (GeM) platform, sharing an insightful article by Union Minister of Commerce and Industry, Piyush Goyal, on X. For small entrepreneurs like Priya Sharma, a women-led startup owner from Varanasi, GeM has been a game-changer, connecting her handloom business to government buyers and helping her secure orders worth Rs 5 lakh in just six months. Launched in 2016, GeM has evolved into a cornerstone of India’s digital governance, transacting Rs 13.43 lakh crore in the fiscal year 2024-25 alone. By cutting red tape, fostering inclusivity, and ensuring significant savings, GeM is empowering startups, MSMEs, and marginalized communities across the country. Here’s how this platform is reshaping public procurement.
GeM’s Remarkable Growth: Rs 13.43 Lakh Crore Transacted
The Government e-Marketplace (GeM) has emerged as a powerhouse in public procurement, facilitating transactions worth Rs 13.43 lakh crore in the fiscal year 2024-25, a 43% increase from the previous year. According to the Ministry of Commerce, GeM’s annual business now stands at Rs 7 lakh crore, with over 30,000 startups and 73,500 women-led businesses registered as of April 2025. This growth reflects GeM’s ability to streamline procurement processes, making them transparent and accessible to small businesses in tier-2 and tier-3 cities. Union Minister Piyush Goyal highlighted that GeM’s integration with global platforms like South Korea’s KONEPS signals its ambition to expand opportunities for Indian businesses internationally.
Empowering Marginalized Communities
GeM has prioritized inclusivity, becoming a lifeline for startups, MSMEs, and women entrepreneurs. Of the 30,000 startups on the platform, 25% are from smaller towns, showcasing GeM’s reach beyond urban centers. Women-led businesses constitute 38% of MSMEs on GeM, with 73,500 such enterprises securing orders worth ₹50,000 crore. For instance, Anjali Devi, a tribal artisan from Jharkhand, used GeM to supply handmade crafts to government offices, earning Rs 3 lakh in 2024. The platform’s user-friendly interface and initiatives like ‘Sahay 2.0’—offering collateral-free loans up to Rs 10 lakh—have made it easier for marginalized sellers to participate in government tenders, ensuring equitable growth.
Transparency and Cost Savings
GeM has revolutionized public procurement by eliminating bureaucratic hurdles and ensuring transparency. The platform connects over 1.6 million government buyers with 23 lakh sellers, facilitating seamless transactions. In 2024-25, GeM saved the government Rs 72,500 crore through competitive bidding, a 33% reduction from previous procurement costs. Independent evaluations by the World Bank estimate that buyers on GeM save up to 9.75% on the median price compared to traditional methods. By digitizing the procurement process, GeM has also reduced corruption, with features like e-tendering and real-time tracking ensuring accountability at every step.
Boosting Startups and MSMEs
Startups and MSMEs form the backbone of GeM’s ecosystem, with 25% of procurement orders coming from micro and small enterprises. The platform’s AI-powered chatbot, GeM AI, launched in 2024, helps small sellers navigate tenders and offers multilingual support in eight regional languages, including Tamil and Assamese. Initiatives like ‘Startup Runway’ have enabled new businesses to secure government contracts, with 30,000 startups transacting Rs 1.81 lakh crore since 2016. For example, a Hyderabad-based tech startup used GeM to supply drones to the Ministry of Defence, securing a Rs 2 crore order within its first year on the platform.
Global Ambitions and Future Plans
GeM is not just a national success but is eyeing global expansion. Its integration with South Korea’s KONEPS platform allows Indian sellers to bid for international contracts, a move that has already generated Rs 5,000 crore in exports. Piyush Goyal announced plans to collaborate with platforms in Singapore and Japan by 2026, further boosting India’s MSME exports. Domestically, GeM aims to onboard 50,000 new sellers by the end of 2025, with a focus on rural cooperatives and self-help groups. The platform’s technological upgrades, including blockchain for secure transactions and IoT for supply chain tracking, are set to make procurement even more efficient.
A Vision for Inclusive Growth
- The GeM platform, as highlighted by PM Modi and Minister Goyal, is more than a procurement tool—it’s a catalyst for inclusive economic growth.
- By empowering startups, MSMEs, and women-led businesses, GeM is bridging the gap between small sellers and government buyers, fostering transparency, and driving savings.
- As it expands its global footprint and technological capabilities, GeM is poised to redefine public procurement, ensuring that even the most marginalized entrepreneurs have a seat at the table.
- For millions of small businesses across India, GeM is not just a marketplace—it’s a gateway to opportunity.
(India CSR)
