How GeM is Quietly Revolutionizing Public Sector Insurance & Employment in India

In a country where the scale of governance is as vast as its diversity, streamlining even the simplest of processes can feel like moving a mountain. Now imagine trying to overhaul public procurement—something that's traditionally been tangled in bureaucracy and inefficiencies. And then imagine not only succeeding in that but also expanding its scope to insurance, manpower hiring, and digital transformation.

That’s exactly what the Government e-Marketplace (GeM) is doing. And its quiet but powerful shift is creating a real impact on the ground.

How GeM is Boosting Employment?

Launched in 2016 as a bold experiment to digitize public procurement, GeM has evolved far beyond its initial vision. In the financial year 2024-25 alone, the platform has insured over 1.3 crore individuals and facilitated the hiring of 1 million manpower resources across various government departments.

Let that sink in. Over 13 million individuals across India, ranging from sanitation workers to frontline personnel, are now covered under insurance schemes procured through a government platform. That's not just a milestone—it’s a massive leap toward inclusive governance and financial protection for India’s public servants.

Insurance Services on GeM: The Turning Point

The real shift began in January 2022, when GeM introduced an entirely new category: Insurance Services. This wasn’t just a checkbox feature—it was a move that aimed to bring transparency, efficiency, and cost-effectiveness to how insurance is procured by government departments.

What made this initiative instantly credible? For starters, only IRDAI-approved insurance providers are allowed on the platform. That means no shady middlemen, no off-the-books transactions, and no trust issues. Just direct, verified, and efficient insurance coverage.

Today, government buyers can easily procure policies like Group Mediclaim, Personal Accident, and Term Insurance through GeM. The outcome? Millions of personnel across public service domains now have comprehensive financial protection—without the red tape.

No Middlemen, No Markups: Just Smarter Governance

What sets GeM apart is its approach. It eliminates the middle layer of brokers and agents, allowing direct transactions between government departments and insurance providers. That’s a game-changer.

This seemingly simple change accelerates the procurement process, makes the system more transparent, and—most importantly—reduces insurance premiums. The cost savings, when multiplied across thousands of departments and millions of individuals, are nothing short of transformative.

As Ajay Bhadoo, CEO of GeM, puts it, "GeM remains committed to continuously enhancing its platform to provide seamless, secure and cost-effective procurement solutions. The milestone of 1.3 crore insured persons reflects the growing confidence of government organizations in leveraging GeM for their insurance needs, reaffirming its role as a transformative force in public procurement.”

More Than Just Health Insurance

But the innovation doesn’t stop at health or life insurance. GeM’s insurance portfolio now includes:

• Asset Insurance

• Transit & Marine Insurance

• Liability Insurance

• Livestock Insurance

• Motor Insurance

• Crop Insurance

• Cyber Insurance

This diversity of offerings means government departments now have access to a full spectrum of risk management solutions—digitally, and at the click of a button. This is especially important in today's era of cybersecurity threats, agricultural volatility, and increasing urban infrastructure investments.

1 Million Jobs Facilitated: Not Just a Procurement Platform

While the insurance achievements are remarkable, there's another headline-making stat that deserves equal attention: GeM has helped facilitate the hiring of 1 million manpower resources in the current financial year.

That’s a staggering figure—and a testament to the platform’s growing role as not just a marketplace but a nation-building tool. Whether it's support staff for ministries, field workers for civic bodies, or contractual tech talent for government digital projects—GeM is helping fill critical roles at scale, with transparency.

Why This Matters for India's Digital Future

We often talk about India's digital revolution in terms of UPI, Aadhaar, or CoWIN. But GeM is quietly powering another kind of transformation—a behind-the-scenes revolution that’s redefining how the government operates.

It’s the kind of change that doesn’t grab headlines but deeply impacts lives. A rural health worker getting insured. A sanitation worker getting financial security for their family. A ministry hiring efficient manpower without delays or corruption. All of this—now possible because of a digital platform built with purpose.

A Blueprint for Other Sectors?

For India’s startup ecosystem, GeM’s story offers inspiration and a blueprint. Here’s a government platform that adopted the startup playbook—solve a real problem at scale, focus on user experience, and eliminate inefficiencies through tech—and it’s delivering impact that rivals the best in private sector innovation.

Startups working in govtech, insurtech, and employment tech could find massive potential by aligning with platforms like GeM or by building complementary services that cater to the public sector.

In a world obsessed with unicorn valuations and funding rounds, the success story of GeM reminds us that some of the most meaningful innovations happen quietly. Without the buzzwords. Without the headlines.

But they matter. Because they move the needle where it really counts—people’s lives, government transparency, and national growth.

As India marches ahead in its digital journey, platforms like GeM prove that with the right mix of intent, innovation, and execution, even the most traditional systems can be turned into engines of transformation.