India’s public procurement system has undergone a major transformation over the past decade, shifting from paper-based and fragmented processes to a digital, transparent, and data-driven framework. At the centre of this transition is the Government e-Marketplace (GeM), which was launched on 9 August 2016 to simplify government purchasing and broaden access to procurement opportunities.
According to the latest data released by the government, GeM has significantly expanded its reach across businesses of all sizes. The platform has facilitated a sharp rise in participation by micro and small enterprises (MSEs), women entrepreneurs, startups, and SC/ST-owned businesses, making government procurement more accessible to traditionally underrepresented groups.
The numbers also underscore the increasing significance of digital procurement in India’s governance ecosystem. Registered MSEs on GeM have surpassed 11.9 lakh, while procurement from these enterprises has reached ₹8.69 lakh crore through over 2.17 crore orders.
Beyond purchasing efficiency, GeM has emerged as a policy tool supporting broader national priorities, including Ease of Doing Business, digital governance, inclusive growth, and the vision of Aatmanirbhar Bharat.
Key Highlights
- Registered MSEs on GeM increased from 2,396 in 2016–17 to over 11.9 lakh.
- Procurement from MSEs rose from ₹69 crore to more than ₹8.69 lakh crore.
- Total orders placed with MSEs expanded from 2,994 to over 2.17 crore.
- Women-owned MSE procurement reached over ₹93,327 crore, with registered units exceeding 2.16 lakh.
- More than 40,000 startups are now registered on GeM, with procurement surpassing ₹61,400 crore.
- Registered SC/ST MSEs crossed 66,000, generating procurement worth over ₹21,800 crore.
GeM’s Role in Reshaping Public Procurement
Before GeM, government procurement in India was often characterised by multiple procurement channels, extensive paperwork, limited visibility of opportunities, and varying procurement practices across departments. Smaller enterprises frequently faced difficulties accessing government contracts due to procedural complexity and information gaps.
GeM sought to address these challenges by creating a unified digital marketplace where government buyers and sellers could interact through standardised and transparent processes.
The platform offers online registration, digital bidding, contract management, electronic payments, reverse auctions, and end-to-end procurement workflows. By reducing direct human intervention, it has improved traceability and minimised opportunities for discretionary decision-making.
This digitalisation has contributed to faster procurement cycles and improved access for businesses across different regions of the country.
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Inclusion Moves to the Centre of Procurement Policy
One of the most notable aspects of GeM’s growth has been the widening participation of groups that historically had limited access to government procurement markets.
Micro and Small Enterprises (MSEs)
Registered MSEs increased from just 2,396 in 2016–17 to over 11.9 lakh today. During the same period, procurement value rose from ₹69 crore to more than ₹8.69 lakh crore, and orders expanded from 2,994 to over 2.17 crore.
This reflects how digital procurement can lower entry barriers and connect smaller firms with great institutional demand.
Women Entrepreneurs
Women-owned MSE participation witnessed substantial growth. Registered women-owned MSEs increased from 268 to more than 2.16 lakh, and procurement value climbed from ₹8 crore to over ₹93,327 crore.
Greater participation by women-led businesses aligns with broader efforts to improve economic inclusion and entrepreneurship opportunities.
Startups
Government procurement has traditionally been difficult for younger firms lacking long operating histories. GeM has helped bridge that gap. Startup participation expanded from 88 entities to more than 40,000, and procurement from startups increased from ₹2 crore to over ₹61,400 crore.
This creates an avenue for innovation-driven firms to scale through government demand.
SC/ST Enterprises
Participation among SC/ST-owned MSEs also expanded significantly. Registered SC/ST MSEs rose from 38 to over 66,000, and procurement value exceeded ₹21,800 crore.
These developments indicate that public procurement is increasingly being used as a tool for inclusive economic development.
Beyond Procurement: Supporting Public Service Delivery
GeM’s contribution extends beyond purchasing office supplies and standard goods.
The platform played an important role in supporting healthcare procurement requirements by facilitating the purchase of: More than 324 crore vaccine doses, Around 199 crore syringes, Medical kits for Vande Bharat trains, Diagnostic equipment, and Various healthcare-related supplies and services.
The scale of these transactions demonstrates how digital procurement infrastructure can support critical public service delivery during periods of high demand.
Why This Matters
Public procurement accounts for a substantial share of economic activity and government expenditure. How governments purchase goods and services influences competition, business opportunities, taxpayer value, and the efficiency of public services. The expansion of GeM matters because it:
- Reduces information asymmetry in government contracting.
- Gives smaller businesses access to large government demand.
- Encourages formalisation among enterprises.
- Improves transparency and auditability in procurement.
- Promotes inclusive growth by expanding opportunities for women, startups, and disadvantaged communities.
- Strengthens trust in public spending through digital records and standardised processes.
For entrepreneurs, GeM represents a gateway into one of India’s largest institutional markets. For citizens, it has implications for how efficiently public money is utilised.
ChartForest Analysis
GeM’s growth reflects a broader structural shift in India’s governance model-from process-driven administration to platform-driven service delivery. However, the headline numbers should be interpreted carefully.
The increase in registered sellers and procurement values clearly indicates stronger adoption. Yet, future success will increasingly depend on the quality of participation rather than the quantity of registrations. Several themes deserve attention:
Opportunities
- Rising government demand can provide stable revenue streams for small businesses.
- Startups may use public procurement as an alternative route to commercial scale.
- Digital procurement data can improve policy evaluation and spending efficiency.
- Rural and local enterprises may benefit from reduced geographical barriers.
Risks and Challenges
- Smaller firms may still face capacity constraints in fulfilling large orders.
- Timely payments and contract execution remain important for supplier confidence.
- Growing transaction volumes require stronger cybersecurity and fraud-monitoring mechanisms.
- Overdependence on a limited group of suppliers could reduce competitive intensity if not monitored.
What to Watch Next
- Expansion of AI-driven procurement tools and analytics.
- Greater use of predictive monitoring to detect irregularities.
- Growth in procurement from cooperatives and rural enterprises.
- Integration of sustainability and green procurement criteria.
- Whether procurement growth translates into measurable improvements in enterprise productivity and employment generation.
GeM’s next phase will likely focus less on establishing the platform and more on improving procurement outcomes, supplier experience, and long-term economic impact.
Source: Ministry of Commerce & Industry
