GeM completes eight years with 1.64 lakh buyers and 4.2 lakh sellers, leading India’s public procurement reform
The Government e Marketplace (GeM), India’s national public procurement portal, celebrated its 8th Incorporation Day with a renewed commitment to inclusive growth, digital governance, and economic empowerment. On this occasion, GeM launched GeMAI, India’s first generative AI-powered chatbot for the public sector, marking a significant milestone in digital public service delivery.
Driving Innovation and Inclusion
Speaking at the event, GeM CEO Mihir Kumar said that GeM continues to innovate and empower, aiming to unlock opportunities for every Indian entrepreneur. He emphasized that the platform’s vision goes beyond procurement to create a more accessible, efficient, and equitable marketplace, especially for micro and small enterprises, startups, weavers, and women-led businesses.
Expanding Reach and Economic Impact
Over the years, GeM has significantly expanded its reach and impact. The platform now supports over 1.64 lakh primary buyers and 4.2 lakh active sellers. It offers more than 10,000 product categories and 330 services. Independent studies by the World Bank and findings from India’s Economic Survey have highlighted the platform’s effectiveness, citing an average cost saving of nearly 10 percent in government procurement through GeM.
Empowering Small Sellers and Entrepreneurs
In line with its goal of empowering traditionally underrepresented groups, GeM has onboarded over 10 lakh micro and small enterprises, 1.3 lakh artisans and weavers, 1.84 lakh women entrepreneurs, and 31,000 startups. Kumar noted that through transparent bid dissemination and integration of diverse stakeholders such as self-help groups and farmer producer organizations, GeM has redefined public procurement in India.
Lowering Costs and Simplifying Participation
The platform has also significantly reduced costs for sellers. Currently, 97 percent of all transactions are free from transaction charges. Fee structures have been revised, with reductions ranging from 33 percent to 96 percent and a cap of ₹3 lakh for orders exceeding ₹10 crore, down from the earlier ₹72.5 lakh. For small sellers with an annual turnover below ₹1 crore, the caution money deposit has been cut by 60 percent, with full exemptions for specific categories.
Enabling Strategic and High-Value Procurements
GeM has also played a critical role in key national procurements, including ₹5,000 crore worth of equipment for the Akash Missile System and ₹5,085 crore in vaccine procurement. The platform is enabling a wide range of complex services such as drone-as-a-service for AIIMS, GIS and insurance coverage for over 1.3 crore lives, and the wet leasing of chartered flights and CT scanners.
Nationwide Adoption and Digital Integration
The platform is now operational across all 36 states and union territories. Uttar Pradesh has emerged as a leader in GeM adoption. Eight states, including Maharashtra, Manipur, Gujarat, Himachal Pradesh, Assam, Uttarakhand, and Chhattisgarh, have made GeM usage mandatory. Successful integrations with Integrated Financial Management Systems (IFMS) have been completed in Assam, Kerala, Odisha, West Bengal, and Delhi, with upcoming implementations planned in Gujarat, Karnataka, and Uttar Pradesh.
Pioneering AI in Public Service Delivery
In a significant digital governance initiative, GeM has introduced GeMAI, a generative AI chatbot designed to enhance user support. The chatbot supports both voice and text interactions in 10 Indian languages, reflecting GeM’s vision of inclusive, intelligent service. Alongside, the platform has adopted advanced analytics for real-time fraud detection, risk mitigation, and ongoing monitoring to ensure transparency and accountability.
