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On 9 August 2016, the Government of India launched the Government e-Marketplace (GeM) to overhaul traditional public procurement. By replacing manual paperwork, bureaucratic red tape, and opaque tendering with a transparent, end-to-end digital ecosystem, GeM has grown into one of the world’s largest public procurement platforms.

As GeM marks a decade of operations in August 2026 and enters its 11th year, its cumulative Gross Merchandise Value (GMV) has crossed an unprecedented ₹20 lakh crore+ ($240+ billion).

Here is a comprehensive breakdown of GeM’s 10-year journey, its defining milestones, economic scale, and how it transformed public buying across India.

GeM at a Glance: 10-Year Factsheet (2016–2026)

1. The Genesis: From Conventional Tenders to a Contactless Ecosystem

Prior to 2016, public procurement in India suffered from fragmented systems across state and central departments, high administrative overhead, and limited vendor access.

Developed after benchmarking international best practices—including government procurement models in the United States and South Korea—GeM was built on four digital pillars:

1. Paperless: Complete digital documentation from listing to contract issuance.
2. Cashless: Integrated online payment systems and direct bank transfers.
3. Contactless: Electronic bidding, reverse auctions, and algorithmic evaluation eliminating manual discretion.
4. Inclusive: Democratising vendor access across tier-2, tier-3, and rural India.

To mandate and standardise this transition, the Ministry of Finance introduced key amendments to the General Financial Rules (GFR), making GeM procurement compulsory for Central Government ministries and departments.

2. Unprecedented Scale: Powering ₹20 Lakh Crore in Public Purchases

GeM has transitioned from a basic portal for office stationery into an end-to-end commerce engine procuring high-tech medical gear, heavy engineering machinery, transport infrastructure, cloud software, and complex outsourced services.

+-------------------------------------------------------------------------+
|                      GeM Public Procurement Scale                       |
+-------------------------------------------------------------------------+
|  [ 1.37 Lakh+ Buyers ]  <--->  [ GeM Portal ]  <--->  [ 25 Lakh+ Sellers ]  |
|                                     |                                   |
|               Cumulative GMV: ₹20 Lakh Crore+ ($240B+)                  |
|               Offerings: 10,660+ Products | 350+ Services               |
+-------------------------------------------------------------------------+

Key Scale Drivers:

• Diverse Buyer Base: Spanning Central Ministries, State Departments, Public Sector Undertakings (PSUs), Autonomous Bodies, Urban Local Bodies, Cooperatives, and Gram Panchayats.
• Expanding Catalogues: Over 10,660 product lines (from computers to fire safety apparatus) and 350 service categories (vehicle hiring, cloud services, catering, and security manpower).
• Policy Flexibility: Introduction of Rate Contracts for recurring purchases and the removal of Caution Money requirements, reducing entry barriers for new vendors.

3. Defence Procurement: The Largest Value Contributor

One of GeM’s most notable achievements is its adoption by the armed forces and defence establishments. Defence procurement has emerged as the single largest departmental category on the portal:

• Department of Military Affairs (DMA): Surpassed ₹1.35 lakh crore in cumulative procurement as of August 2026.
• Total Share: Defence procurement accounts for over 14.93% of GeM’s total cumulative GMV.
• Specialised Tech Acquisition: In April 2025, GeM forged partnerships with IN-SPACe (space-tech) and the Drone Federation India (DFI) to fast-track cutting-edge aerospace and tactical drone acquisitions for national security agencies.

4. Inclusive Capitalism: Democratising Government Contracts

Historically, large conglomerates dominated government tenders due to rigid turnover and experience conditions. GeM systematically inverted this model by introducing targeted onboarding initiatives:

                  Inclusive Procurement Snapshot (2025-26)
  -------------------------------------------------------------------------
  [MSEs]                ₹2.36 Lakh Crore+  (51 Lakh+ Orders)
  [Women-led MSEs]      ₹28,000 Crore+     (2.1 Lakh+ Registered Sellers)
  [Startups]            ₹19,000 Crore+     (+36% Annual Growth)
  [SC/ST Enterprises]   ₹6,000 Crore+      (+28% Annual Growth)
  -------------------------------------------------------------------------

Dedicated Inclusivity Programs:

1. SWAYATT (Startups, Women & Youth Advantage Through e-Transactions): Promotes market access for underrepresented demographic groups.
2. Womaniya Initiative (in partnership with UN Women): Dedicated showcase for women entrepreneurs and Women Self-Help Groups (WSHGs).
3. SARAS Collection: Integrates rural Self-Help Groups (SHGs) under the Ministry of Rural Development, opening institutional markets for handmade and daily utility products.
4. Startup Runway 2.0: Enables DPIIT-recognised startups to showcase innovative, disruptive products directly to public buyers.
5. GeM Suvidha Kendras (June 2026): Rolled out across 50 locations via Common Service Centres (CSC-SPV) to provide physical handholding, catalogue creation, and registration assistance in rural and semi-urban pockets.

5. Technology, Data Analytics & Interoperability

GeM is evolving from a standalone portal into an interoperable public procurement network:

• Single Procurement Interface: Integrating with the Central Public Procurement Portal (CPPP), IREPS (Indian Railway Electronic Procurement System), and the DPPP (Defence Public Procurement Portal).
• Price Intelligence & Integrity: Real-time business analytics offer tools like Last Purchase Price (LPP), Price Trend Trackers, and the GeM Availability Report and Past Transaction Summary to curb inflated pricing and cartelisation.
• FinTech Integration (GeMSahay): In partnership with Union Bank of India, the GeMSahay app provides instant, paperless, collateral-free working capital loans to proprietorship sellers against confirmed purchase orders—without requiring buyer consent.
• Statutory Compliance: Integrated with the Employees’ Provident Fund Organisation (EPFO) database to verify statutory labour compliance in manpower outsourcing contracts.

6. The Road Ahead: GeM in its 11th Year

As the Government e-Marketplace completes a decade of service, its next growth phase is anchored on Artificial Intelligence (AI), predictive analytics, and hyper-local sourcing.

By aligning government spending power with domestic manufacturing and grassroots entrepreneurs, GeM serves as a foundational pillar for national priorities: Aatmanirbhar Bharat, Make in India, Digital India, and Vocal for Local.

Frequently Asked Questions (FAQs)

Q1. When was the Government e-Marketplace (GeM) launched?

GeM was launched on 9 August 2016 by the Ministry of Commerce and Industry to digitise and streamline public procurement across India.

Q2. What is the total procurement value (GMV) on GeM as of 2026?

GeM has facilitated over ₹20 lakh crore+ (over $240 billion) in cumulative Gross Merchandise Value (GMV) across more than 1.37 lakh buyer organisations.

Q3. What share does Defence hold in GeM procurement?

Defence procurement accounts for over 14.93% of GeM’s cumulative GMV, with the Department of Military Affairs (DMA) crossing ₹1.35 lakh crore in purchases.

Q4. What is the GeMSahay initiative?

GeMSahay is a mobile application developed in partnership with financial institutions (such as Union Bank of India) that provides registered GeM sellers with instant, paperless, and collateral-free working capital loans against purchase orders.

Q5. How does GeM promote inclusive growth?

Through dedicated programs like SWAYATT, Womaniya, SARAS Collection, and Startup Runway 2.0, GeM enables MSEs, women entrepreneurs, SC/ST businesses, and startups to secure government contracts directly, generating over ₹2.6+ lakh crore in inclusive procurement in FY 2025–26 alone.