Commerce Minister Piyush Goyal highlights GeM’s role in transparent public procurement

The Government e-Marketplace (GeM) represents one of India's most transformative digital governance initiatives, launched on August 9, 2016, under the visionary Digital India programme. As Commerce Minister Piyush Goyal emphasized during the 10th Foundation Day celebrations in New Delhi, GeM embodies the '4 Rights' principle — right product, right quality, right price, and right time — fundamentally reshaping how the world's largest democracy procures goods and services worth billions annually. Before GeM's inception, public procurement in India was plagued by opaque tendering processes, cartelization, middlemen exploitation, and systemic corruption that drained public resources and excluded small enterprises. The platform's creation was necessitated by the recommendations of the 2012 Committee on Public Procurement Reform headed by Dr. K. P. Krishnan, which highlighted the urgent need for transparency, efficiency, and inclusivity in government buying. Key stakeholders in this ecosystem include the Ministry of Commerce and Industry (nodal ministry), GeM SPV (Special Purpose Vehicle) as the implementing agency, over 1.5 lakh government buyers across central and state departments, and more than 70 lakh registered sellers and service providers — notably including a significant proportion of MSMEs, women entrepreneurs, SC/ST-owned enterprises, and startups. The platform's architecture leverages Aadhaar-based authentication, GeM Sahayak support system, and integration with PFMS (Public Financial Management System) and GSTN for seamless payment and compliance. Constitutionally, GeM aligns with Article 299 (contracts by government), Article 300 (suits and proceedings), and the broader Directive Principles under Article 39(b) and (c) — ensuring distribution of material resources for common good and preventing concentration of wealth. It operationalizes the General Financial Rules (GFR) 2017, particularly Rule 149 mandating procurement through GeM for common-use goods and services. The platform also supports the Public Procurement (Preference to Make in India) Order 2017, reinforcing Atmanirbhar Bharat by prioritizing domestic manufacturers. Economically, GeM has achieved remarkable milestones: crossing ₹4 lakh crore Gross Merchandise Value (GMV) in FY 2023-24, with cumulative GMV exceeding ₹9 lakh crore since launch. It has generated estimated savings of 15-20% on procurement costs, translating to thousands of crores in taxpayer money saved. MSME participation has surged, with over 60% of orders going to micro and small enterprises, directly supporting employment generation and inclusive growth. Politically, it showcases cooperative federalism as states voluntarily onboard — 36 states/UTs now integrated — demonstrating trust in central digital infrastructure. Broader themes connect GeM to India's G20 presidency priority of digital public infrastructure (DPI), positioning it alongside UPI, Aadhaar, and DigiLocker as a replicable model for developing nations. It exemplifies 'minimum government, maximum governance' by replacing discretion with data-driven decisions. Future implications include GeM 2.0 with AI-driven analytics, blockchain for audit trails, expansion into services procurement (already 40% of GMV), and potential integration with ONDC (Open Network for Digital Commerce) for unified digital commerce. As India targets $5 trillion economy, GeM's evolution into a strategic procurement intelligence platform will be pivotal for fiscal discipline, supply chain resilience, and achieving Sustainable Development Goals — particularly SDG 12 (responsible consumption) and SDG 16 (effective institutions).