India’s digital governance ecosystem has achieved a significant milestone as the Government e-Marketplace (GeM) crosses a cumulative Gross Merchandise Value (GMV) of Rs 18.4 lakh crore. This latest development underscores the rapid transformation of public procurement in the country, driven by digitisation, transparency, and inclusivity.
The platform’s growth has been particularly notable in the financial year 2025-26, during which it surpassed Rs 5 lakh crore in transactions alone. This surge highlights the increasing reliance of government departments, ministries, and state agencies on GeM as a primary procurement channel.
More importantly, the expansion of GeM is not just about numbers. It reflects a structural shift in how public funds are spent, ensuring efficiency, reducing corruption, and enabling broader participation from small businesses, startups, and underrepresented groups. As India accelerates its digital public infrastructure push, GeM is emerging as a central pillar of governance reform and economic inclusion.
The Government e-Marketplace has evolved into one of the world’s largest digital procurement platforms. Originally launched to streamline government purchases, it now serves as a unified interface connecting buyers and sellers across the country.
The milestone of Rs 18.4 lakh crore GMV reflects cumulative transactions processed through the platform since its inception. The recent financial year alone contributed over Rs 5 lakh crore, indicating a sharp rise in adoption among government entities.
This growth has been driven by multiple factors, including improved digital infrastructure, policy support, and increasing trust in transparent procurement systems. Government departments are now shifting away from traditional tender-based procurement processes toward real-time, online transactions.
GeM was launched in 2016 as part of India’s broader digital transformation agenda. Over the years, it has undergone several upgrades to enhance usability, expand product categories, and integrate advanced technologies.
Key milestones include:
Expansion to include services alongside goods procurement
Integration of artificial intelligence and data analytics tools
Increased participation from state governments and public sector units
Rapid onboarding of sellers from across India
The platform’s steady evolution has helped it scale rapidly while maintaining transparency and efficiency.
One of the most significant aspects of GeM’s success is its role in promoting inclusive economic growth. The platform has enabled micro and small enterprises (MSEs) to access government procurement opportunities that were previously difficult to navigate.
In 2025-26, MSEs accounted for nearly 68 percent of total orders placed on GeM. Their contribution to overall GMV stood at over 47 percent, reflecting strong participation and growing competitiveness.
More than 11 lakh MSEs are now registered on the platform, fulfilling millions of orders annually. This has created new revenue streams for small businesses and strengthened local economies.
Women-led enterprises have also seen substantial gains. Orders worth over Rs 28,000 crore were awarded to such businesses, highlighting the platform’s role in promoting gender-inclusive growth.
Similarly, enterprises owned by Scheduled Caste and Scheduled Tribe entrepreneurs secured contracts exceeding Rs 6,000 crore. Startups, too, are benefiting, with orders crossing Rs 19,000 crore, indicating a shift toward innovation-driven procurement.
Policy experts believe that GeM’s design has significantly lowered entry barriers for smaller players. By digitising the procurement process, the platform eliminates the need for intermediaries and reduces administrative complexity.
According to a report by the Ministry of Commerce and Industry digital procurement platforms like GeM are critical for improving ease of doing business and ensuring equitable access to government contracts.
A major strength of GeM lies in its use of advanced technologies such as artificial intelligence, machine learning, and real-time analytics. These tools help monitor transactions, detect irregularities, and improve decision-making.
The platform’s algorithm-driven systems ensure fair pricing and reduce the risk of manipulation. Real-time tracking allows buyers to compare options and make informed choices quickly.
Additionally, digital documentation and automated workflows have significantly reduced processing times, making procurement faster and more efficient.
Experts highlight that platforms like GeM are redefining public accountability. By maintaining a digital trail of transactions, the system enhances transparency and reduces the scope for corruption.
As noted by the NITI Aayog digital platforms are key enablers of governance reform, improving service delivery and strengthening institutional trust.
Another key trend is the increasing participation of state governments. Procurement by states has grown by over 38 percent, indicating wider adoption beyond central agencies.
Public sector undertakings, municipal bodies, and local administrations are also leveraging the platform for their procurement needs. This expansion is helping standardise procurement practices across different levels of government.
The growing ecosystem of buyers and sellers is creating a network effect, further accelerating the platform’s growth.
The rapid expansion of GeM has far-reaching implications for India’s economy. By streamlining procurement, the platform is helping optimise public spending and reduce inefficiencies.
It also supports the government’s broader goals of promoting “Make in India” and boosting domestic manufacturing. By providing a transparent marketplace, GeM encourages competition and ensures that government contracts are awarded fairly.
From a policy perspective, the platform aligns with India’s digital public infrastructure strategy, which aims to leverage technology for inclusive growth and governance reform.
Looking ahead, GeM is expected to further expand its capabilities. Potential developments include:
According to data released by the World Bank digital procurement systems can significantly improve efficiency and reduce costs in public spending, particularly in emerging economies.
As India continues its digital transformation journey, GeM is likely to play an even more critical role in shaping the future of public procurement.
The achievement of Rs 18.4 lakh crore GMV marks a defining moment for India’s public procurement ecosystem. The Government e-Marketplace has not only transformed how government purchases are made but also created new opportunities for businesses across the country.
By combining transparency, technology, and inclusivity, GeM is setting a global benchmark for digital procurement platforms. Its continued growth will be crucial in driving economic efficiency, empowering small enterprises, and strengthening governance frameworks in the years ahead.