GeM celebrates 8th Incorporation Day, showcases milestones in inclusive procurement and digital governance

THEBUSINESSBYTES BUREAU

NEW DELHI, MAY 19, 2025

The Government e Marketplace (GeM), India’s national public procurement portal, celebrated its 8th Incorporation Day today, highlighting its pivotal role in driving inclusive economic growth and digital transformation in public procurement.

Addressing the media on the occasion, GeM CEO Mihir Kumar emphasized the platform’s vision of democratizing procurement. “At GeM, we are innovating to simplify and empowering to transform — because when innovation meets inclusion, it unlocks opportunities for every Indian entrepreneur,” he said. “Our journey goes beyond procurement — it’s about building a more accessible, efficient, and equitable marketplace for all.”

Since its inception, GeM has experienced exponential growth. The platform now boasts over 1.64 lakh primary buyers and 4.2 lakh active sellers, offering more than 10,000 product categories and 330 services. Independent evaluations by institutions such as the World Bank and India’s Economic Survey have recognized GeM’s impact, noting an average cost saving of nearly 10% in government procurement.

Kumar noted the platform’s inclusive reach, sharing that GeM now supports over 10 lakh Micro and Small Enterprises (MSEs), 1.3 lakh artisans and weavers, 1.84 lakh women entrepreneurs, and 31,000 startups. “By ensuring complete transparency in bidding and actively integrating MSEs, start-ups, women-led enterprises, self-help groups, and Farmer Producer Organizations (FPOs), GeM has redefined the landscape of public procurement in India,” he said.

The platform has also introduced a series of reforms to reduce costs and improve accessibility for small sellers. Currently, nearly 97% of all transactions on GeM are free of transaction charges. Fee reductions range from 33% to 96%, with a maximum cap of Rs 3 lakh for high-value orders—down from the earlier Rs 72.5 lakh. For sellers with annual turnovers under Rs 1 crore, the caution money deposit has been slashed by 60%, with exemptions granted to select groups.

Demonstrating its strategic significance, GeM facilitated major procurements, including Rs 5,000 crore for equipment related to the Akash Missile System and Rs 5,085 crore for vaccine acquisition. The platform is also enabling sophisticated services such as drone-as-a-service for AIIMS, GIS and insurance coverage for over 1.3 crore individuals, as well as wet leasing of chartered flights and CT scanners.

GeM’s adoption is now pan-India, with all 36 States and Union Territories onboard. Uttar Pradesh leads in usage, while eight states—including Maharashtra, Manipur, Gujarat, Himachal Pradesh, Assam, Uttarakhand, and Chhattisgarh — have mandated GeM for procurement. Successful integrations with state financial systems (IFMS) in Assam, Kerala, Odisha, West Bengal, and Delhi are set to expand to Gujarat, Karnataka, and Uttar Pradesh.

Further reinforcing transparency and accountability, GeM has deployed advanced analytics for real-time fraud detection and risk management. The platform also introduced GeMAI, India’s first generative AI-powered chatbot in the public sector, offering multilingual support in 10 Indian languages and operating via voice and text. GeMAI enhances user interaction and exemplifies GeM’s commitment to intelligent, inclusive digital services.

Congratulating all stakeholders, Kumar concluded, “With the continued support of our ecosystem, I am confident that GeM will scale even greater heights and contribute meaningfully to making India truly Aatmanirbhar.”