Can Indian Startups Go Global via GeM? A New Feature Could Make It Possible

When the Government of India launched the Government e-Marketplace (GeM) in 2016, it was envisioned as a one-stop digital shop for public procurement. In less than a decade, it has grown from a government-run portal into India’s largest procurement ecosystem — empowering startups, micro and small enterprises (MSMEs), women-led businesses, artisans, self-help groups, and even differently-abled entrepreneurs across the country.

Now, GeM is taking its most ambitious leap yet — going global.

At its 9th Foundation Day celebration held recently, GeM CEO Mihir Kumar made an announcement that could reshape the landscape for Indian startups and MSMEs: the platform will soon introduce a Global Tender Enquiry feature.

This means ministries and government departments will no longer be restricted to sourcing only from Indian vendors. For the first time, they will be able to float tenders for international suppliers, in line with India’s Free Trade Agreements (FTAs) with countries such as the UAE and the UK.

But what does this mean for Indian startups?

A Bigger Battlefield, and Bigger Opportunities

The idea of inviting global competition may appear daunting to some, but the intent is to elevate standards and open new opportunities. For Indian startups and MSMEs, this move offers both a challenge and an advantage — the chance to compete globally and potentially collaborate with international buyers, all through the same trusted platform.

“This functionality is highly relevant considering the ongoing global trade conversations,” said Mihir Kumar. He added that GeM is also working to deepen engagement with states to promote wider adoption.

GeM by the Numbers: A Growing Force

GeM has evolved into a powerful vehicle for inclusion, scale, and transparency in public procurement. The numbers from FY 2025 offer a clear view of the platform’s reach and impact.

• Primary Buyers: 1,65,977

• Product Categories: 11,071

• Service Categories: 344

• Sellers and Service Providers (with completed profiles): 23,48,296

• Current Gross Merchandise Value (GMV): ₹1,41,151 crore

• Orders Placed: 20,12,636

The volume of business conducted through GeM highlights the scale of government demand, now made accessible to even the smallest of enterprises.

States Driving the Digital Procurement Revolution

Adoption of GeM is no longer limited to the central government. All 36 States and Union Territories have now integrated with the platform, with eight states — including Uttar Pradesh, Maharashtra, and Gujarat — mandating its use.

Among these, Uttar Pradesh leads in procurement, with a GMV exceeding ₹3,900 crore in the current fiscal. Gujarat follows with ₹2,000 crore, and Bihar with ₹800 crore.

This trend underscores a critical shift — that startups and entrepreneurs in smaller towns and cities are now participating in a transparent, technology-led public procurement system that was once dominated by large players.

Lowering Entry Barriers for Entrepreneurs

In recent years, GeM has introduced reforms that have made it easier for startups and MSMEs to enter and thrive on the platform:

• Removal of caution money

• Reduced vendor assessment fees

• Lower transaction charges, with 97 percent of orders now exempt

• Special support and onboarding for first-time sellers in underserved regions

These reforms reflect GeM’s continued push toward inclusion — enabling entrepreneurs from diverse backgrounds and geographies to engage with government demand efficiently.

Celebrating Nine Years of Transformation

The 9th Foundation Day celebration was not just a ceremonial event. It featured forums like GeM Seller Samvad and GeM Manthan, platforms designed to encourage dialogue between buyers, sellers, and policymakers. These forums aim to gather real-world feedback and shape a more responsive, future-ready procurement ecosystem.

“GeM has become the backbone of India’s procurement landscape — merging transparency with transformation,” said Mihir Kumar.

What began as a digital tool has now grown into a systemic shift in how public procurement operates in India — one that is increasingly inclusive, competitive, and now, potentially global.

What This Means for Startups

For startups across India — whether they operate in SaaS, climate tech, agri-tech, healthcare, or manufacturing — the rollout of the global tender feature could be the gateway to their next phase of growth.

It’s no longer just about accessing Indian government buyers. Startups will now be exposed to international competition, which could lead to stronger innovation, better pricing strategies, and higher standards. Moreover, the possibility of collaborating with or supplying to global entities via the same interface brings an entirely new dimension to startup growth.

In parallel, international startups may also begin exploring opportunities within India’s public procurement space, potentially paving the way for co-innovation, cross-border partnerships, and technology exchange.

GeM’s upcoming global tender feature signals more than a platform upgrade — it marks a strategic leap toward positioning Indian entrepreneurs on the global procurement map.

By fusing ease of access with strategic expansion, and inclusion with innovation, GeM is becoming more than just a marketplace. It is turning into a bridge — connecting Indian sellers with global buyers, and transforming government procurement into a tool for economic empowerment and startup scale.

For the Indian startup ecosystem, this could be the beginning of a truly borderless opportunity.