Digital India Success Story: GeM Emerges as India's Procurement Powerhouse

In a strong endorsement of the Government e-Marketplace (GeM), Prime Minister Narendra Modi recently lauded the platform as a beacon of transparent governance and a catalyst for empowering marginalized communities. His statement on social media wasn’t just a pat on the back—it was a validation of a quiet but powerful revolution underway in India’s public procurement landscape.

“The government’s push for transparent governance gets a digital boost. GeM India is opening doors for the marginalised, cutting red tape and ensuring massive savings,” PM Modi declared, summing up what GeM has come to represent since its inception in 2016.

From Obsolete Systems to a Digital Backbone

Launched to replace the inefficient Directorate General of Supplies and Disposals (DGS&D), GeM has transformed how India’s government agencies buy goods and services. By eliminating intermediaries and injecting competition, GeM has shattered traditional procurement monopolies and opened the gates for equitable participation. Startups, micro and small enterprises (MSEs), women-led businesses, artisans, and entrepreneurs from SC, ST, and OBC communities now stand on the same digital footing as large suppliers.

The numbers tell a compelling story. GeM clocked a record-breaking ₹4 lakh crore in Gross Merchandise Value (GMV) during FY 2023–24—a 205% growth in service procurement alone. Cumulatively, it has facilitated transactions worth over ₹13.4 lakh crore. The ambitious target for this fiscal year? ₹7 lakh crore. This is not just growth; it is acceleration with purpose.

Democratizing Access, One Transaction at a Time

GeM’s impact goes beyond statistics. It has democratized procurement by making it simple, accessible, and transparent. Over 1.6 lakh government buyers now interact with more than 23 lakh registered sellers and service providers. That’s not just procurement—it’s participation on an unprecedented scale.

Union Commerce and Industry Minister Piyush Goyal described GeM as a “true gem” of transparent governance. His words reflect the sentiment of a government betting big on digital infrastructure to realize the vision of Viksit Bharat 2047—a fully developed India by its 100th year of independence.

“GeM has eliminated entry barriers, weeded out corruption, empowered marginalised sections, and enabled massive savings of taxpayers’ money,” Goyal wrote in a recent note.

A New Era with GeMAI and AI-Powered Procurement

GeM is not resting on its laurels. It’s evolving. With the introduction of GeMAI, India’s first generative AI-powered chatbot tailored for public sector procurement, the platform is stepping boldly into the future. GeMAI supports text and voice in 10 Indian languages, making it a truly inclusive digital assistant for users across linguistic and geographic boundaries.

Advanced analytics and AI-driven fraud detection systems have also fortified the platform’s integrity. Real-time monitoring, risk mitigation, and predictive analysis ensure that the system remains not just efficient but secure.

From Villages to Missiles: The Breadth of GeM

GeM’s versatility is unmatched. It caters to both the grassroots economy and high-end strategic sectors. It has been used to procure:

• ₹5,000 crore worth of equipment for the Akash Missile System
• ₹5,085 crore worth of vaccines
• CT scanners for AIIMS
• Chartered flights and drone services
• Insurance for over 1.3 crore beneficiaries

This range showcases GeM’s maturity as a platform that meets the needs of both village-level self-help groups and national security programs.

Powering a Grassroots Economy

GeM’s most transformative impact lies at the grassroots. Over 10 lakh MSEs, 1.3 lakh artisans and weavers, 1.84 lakh women entrepreneurs, and 31,000 startups have found a digital doorway to public contracts.

By reducing transaction fees by up to 96% and slashing caution money requirements by 60%, GeM has made public procurement not just accessible but welcoming to small players. In many cases, marginalized sellers receive full exemptions—removing the final hurdles to entry.

“GeM is more than a procurement portal. It is a platform of possibilities—of growth, empowerment, and nation-building,” said GeM CEO Mihir Kumar.

Integrated, Inclusive, and Interoperable 

GeM’s seamless integration with state-level financial management systems is furthering its national reach. States like Uttar Pradesh, Maharashtra, and Gujarat have mandated its use. Assam, Kerala, Odisha, West Bengal, and Delhi have already connected it to their IFMS. Gujarat, Karnataka, and Uttar Pradesh are next in line.

This integrated approach ensures end-to-end transparency—from budget allocation to final payment—bringing an unprecedented level of accountability to public spending.

Setting Global Benchmarks in Public Procurement

In a world increasingly concerned with equitable digital access, GeM stands out as a model worth emulating. Its blend of technology, transparency, and inclusion sets it apart on the global stage. Countries looking to overhaul inefficient procurement systems can find both inspiration and a blueprint in GeM.

As India moves toward its Viksit Bharat 2047 goal, platforms like GeM will be the unsung engines driving inclusive growth, efficient governance, and economic justice.

GeM is not just a procurement portal—it is a testament to what digital India can achieve when technology meets vision, and inclusion meets execution.