GeM COMPLETES 10 YEARS: TRANSFORMING PUBLIC PROCUREMENT IN INDIA

PRERNA FOR IAS

         Mehnat Aapki, Guidance Humari

         Roz ki Prelims Practice — Experts ke Saath

GeM COMPLETES 10 YEARS: TRANSFORMING PUBLIC PROCUREMENT IN INDIA

Context: The Government e-Marketplace (GeM) completed 10 years of operations on 9 August 2026. Launched on 9 August 2016 under the Ministry of Commerce and Industry, GeM has developed into India’s unified digital platform for government procurement.

Background: GeM was created to replace fragmented and often paperwork-heavy procurement with a transparent, competitive and technology-based system. It connects government ministries, departments, public-sector enterprises and other public buyers with sellers across the country. The platform digitises the procurement cycle and supports tools such as bidding, price comparison and online transactions.

Major Achievements: By its tenth anniversary, GeM had facilitated over ₹20 lakh crore in cumulative procurement through more than 3.78 crore orders. Annual GMV, which was only ₹422 crore in 2016–17, exceeded ₹5 lakh crore in both 2024–25 and 2025–26. The platform has more than 25 lakh sellers and 1.37 lakh buyer organisations.

GeM has also promoted inclusion. Around 12.28 lakh Micro and Small Enterprises have fulfilled orders worth over ₹9 lakh crore, accounting for about 45.6% of cumulative GMV. More than 2.24 lakh women-led MSEs and over 42,000 startups have also participated significantly.

India’s Approach and Significance: India views GeM as an instrument of transparent governance, Ease of Doing Business, competition and value for public money. AI and machine-learning tools are being used to identify suspected cartelisation, collusion and order splitting. An IIT Delhi study estimated ₹1.76 lakh crore in net social savings during FY 2023–24 to FY 2025–26.

Current Status: GeM is entering its second decade with greater emphasis on AI-based procurement intelligence, last-mile Suvidha Kendras, credit access, sustainability and deeper integration of States, panchayats and cooperatives.

Analytical Questions

1. Question: GeM has improved transparency in public procurement. Does digitisation by itself remove corruption?

Answer: No. Digitisation reduces face-to-face discretion and creates an audit trail, but manipulation can still shift into areas like specification design, cartelisation or fake competition. Therefore, GeM needs strong data analytics, independent audits, grievance systems and accountability of officials. Technology helps, but good institutions and ethical administration remain essential.

2. Question: How does GeM help MSMEs beyond simply giving them access to government tenders?

Answer: GeM gives small firms access to a large national buyer base without depending heavily on local contacts or intermediaries. It can improve cash flow, visibility and business credibility. Features such as credit support can also help. However, timely payments and simple compliance remain important for real inclusion.

3. Question: What risks come with using AI and machine learning in public procurement?

Answer: AI can detect unusual bidding patterns, collusion or order splitting, but it should not become a black box. Wrong flags can hurt genuine sellers. The system should therefore allow human review, clear reasons, appeal mechanisms and regular testing for bias. AI should support decision-making, not replace accountability.

4. Question: How can GeM improve value for money without creating a race for the lowest price?

Answer: Government procurement should not focus only on the cheapest bid. Quality, durability, service support and life-cycle cost also matter. GeM can improve this by using better technical specifications, quality ratings, performance history and suitable procurement methods. The aim should be best value, not simply lowest initial cost.

5. Question: If you were a District Magistrate, how would you use GeM while ensuring local and small suppliers are not left behind?

Answer: I would train district departments and local sellers on the platform and use Suvidha Kendras for handholding. I would ensure timely payments and transparent specifications. At the same time, I would avoid favouring local firms unfairly. The objective should be wider participation, genuine competition and reliable public procurement.