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Government e Marketplace | Features, Benefits & Future Prospects

· 7 min read

In this post, we dive into everything you need to know about the Government e-Marketplace (GeM) - from understanding what is GeM, how it works, its benefits, and I'll even share some tips towards the end.

Before we delve into the specifics of GeM, it's crucial to grasp the concept of public procurement.

Essentially, when our government needs any product or service, it issues a public notice, commonly known as a tender, to acquire them from the public sector. This process of acquiring goods or services is what we call public procurement.

GeM Government e Marketplace

Why does the Government Issue Tenders?

The issuance of tenders by the government is rooted in the principles of fairness, transparency, and value for money.

Tenders ensure that public spending is conducted openly, allowing multiple suppliers to compete for government contracts. This process is governed by various regulations, including the General Financial Rules (GFR) 2017, the Delegation of Financial Powers Rules, 1978, and the Manual on Policies and Procedures for Purchase of Goods issued by the Ministry of Finance.

The objective is to ensure that taxpayers' money is used efficiently, procuring the best possible goods and services at the most competitive prices.

How Public Procurement Works

The public procurement process involves several steps, starting with the government publishing a tender. Interested sellers participate, and once the participation deadline passes, the government (buyer) evaluates the bids to determine eligibility. The contract is then awarded to the bidder offering the lowest rate.

However, this process wasn't always as straightforward and transparent as it needed to be, which led to the introduction of the Government e-Marketplace (GeM).

What is GeM?

Launched in 2016, GeM is an online portal for public procurement that any government buyer can use to procure products or services.

Its introduction aimed to enhance efficiency, transparency, and inclusiveness in the procurement process.

GeM functions as a one-stop shop for government buyers seeking common-use goods and services.

It operates on a simple and transparent online platform, accessible to both buyers and sellers.

The Indian government has even mandated purchases through GeM, adding it as Rule No 149 in the General Financial Rules.

Unique Features of GeM

GeM boasts several unique features that set it apart from traditional procurement processes:

  • E-Bidding and Reverse Auction: Allows for competitive pricing and transparency.
  • Incident Management: Ensures quick resolution of issues and disputes.
  • Payment Integration: Streamlines the payment process between buyers and sellers.
  • Preferences for Make in India, MSE, and Startups: Promotes local businesses and innovation.

Benefits of GeM

GeM plays a pivotal role in the Indian Public Procurement sector, offering numerous benefits to both sellers and buyers

For Government Buyers

  • Transparency: All bids and transactions are conducted online, which makes the process more transparent.
  • Efficiency: The online platform streamlines the procurement process, making it faster and more efficient.
  • Cost savings: GeM has helped government buyers to save money by getting the best possible prices for goods and services.

For Sellers

  • Access to a large market: GeM provides sellers with access to a large market of government buyers.
  • Level playing field: GeM provides a level playing field for all sellers, regardless of their size or location.
  • Easy payment: Sellers are paid directly by the government, which eliminates the risk of non-payment.

How GeM Works

GeM simplifies the procurement process, making it more accessible and efficient for both buyers and sellers. The platform requires registration, after which sellers can list their products or services, and buyers can publish their requirements. The process fosters a competitive environment that benefits all parties involved.

GeM Statistics

GeM has had a significant impact on public procurement in India. In the past few years, GeM has:

  1. Facilitated the procurement of goods and services worth over ₹1 lakh crore.
  2. Registered over 1.5 lakh sellers on the platform.
  3. Saved government buyers over ₹10,000 crore.

Read More

Success Tips for Sellers on GeM

To succeed on GeM, sellers should:

  • Identify High-demand Items: Focus on products with strong government demand.
  • Regularly Update Inventory: To ensure listings remain active and visible.
  • Participate in Bids and Reverse Auctions: To increase your chances of winning contracts.
  • Comply with GeM's Terms and Conditions: To maintain good standing on the platform.

Future Outlook of GeM

The future of GeM looks promising, with plans to incorporate advanced technologies such as AI and ML to further enhance its efficiency and transparency.

The partnership with TCS to upgrade the platform underscores the government's commitment to leveraging technology to improve public procurement.


To sum it up, GeM is a game-changer in the Indian public procurement scene.

It’s like a one-stop-shop where the government meets businesses, making buying and selling as easy as pie.

With GeM, the whole procurement process has been turned on its head – it’s faster, clearer, and just better for everyone involved.

It’s a shining example of how digital tools can make government operations more nimble and open.

Looking ahead, GeM is all set to widen its horizons, bringing in more tech magic and opening doors for businesses of all sizes.

For anyone looking to get a piece of the government pie, getting the hang of GeM is like striking gold. It’s a chance to play in the big leagues, contributing to and reaping the rewards from India’s growth story.

In a nutshell, GeM isn’t just an online marketplace; it’s a revolution in how government procurement gets done. It’s making things fair play, giving every business, big or small, a fair shot at success.

Whether you’re on the lookout for government deals or looking to sell your goods and services, GeM is your golden ticket.

As we move forward, the success stories from GeM are set to become a beacon, showing us the way to a more streamlined, transparent, and inclusive future in public procurement.

It’s a win-win for the government and businesses alike, paving the way for a future where doing business with the government is no longer a headache but an opportunity ripe for the taking.

FAQs about the GeM Portal

What is the Government e Marketplace (GeM)?
GeM is an online platform introduced by the Government of India for facilitating procurement of goods and services by government organizations and departments.
How does GeM work?
GeM works as a marketplace where government buyers can publish their requirements, and registered sellers can bid for supplying those goods and services.
What are the benefits of using GeM?
GeM offers benefits such as transparency, efficiency, cost-effectiveness, and accessibility to a wide range of buyers and sellers.
What features does GeM offer?
GeM features include e-Bidding, reverse auctions, incident management, payment integration, and preferences for Make in India, MSEs, and startups.
What are the statistics regarding GeM usage?
GeM has witnessed significant growth, with a large number of buyers and sellers, extensive product and service categories, and impressive order volumes and values.
What does the future hold for GeM?
GeM is poised for further advancements, including the integration of AI and ML technologies, to enhance efficiency and transparency in public procurement.
How can businesses leverage GeM for growth?
Businesses can leverage GeM by registering as sellers, participating in bids, updating their inventory regularly, and adhering to GeM's terms and conditions.
Is GeM mandatory for government procurement?
Yes, GeM has been made mandatory for government procurement, as per Rule No. 149 in the General Financial Rules (GFR) of India.
Can small businesses benefit from GeM?
Absolutely, GeM offers preferences and opportunities for Micro and Small Enterprises (MSEs) and startups, making it inclusive and supportive of small businesses.
Where can I learn more about GeM?
You can explore the official GeM website for detailed information, guidelines, and resources related to the Government e Marketplace. Or you can start learning GeM portal using our free course.

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