GeM Crosses Rs 20 Lakh Crore In Cumulative Public Procurement Ahead Of 10th Anniversary

New Delhi, Aug 8 (KNN) The Government e-Marketplace (GeM) has crossed Rs 20 lakh crore in cumulative Gross Merchandise Value (GMV) through more than 3.78 crore orders, ahead of completing ten years of operations on August 9, reflecting its expanding role in India's public procurement ecosystem.

GeM Records Rapid Growth In Procurement Value
The platform's annual GMV has grown from Rs 422 crore in FY 2016-17 to over Rs 5 lakh crore in both FY 2024-25 and FY 2025-26. During the first four months of FY 2026-27, GeM recorded a GMV of Rs 1,47,888 crore.

GeM said it took more than eight years to achieve its first Rs 10 lakh crore in cumulative GMV, while the next Rs 10 lakh crore was added in less than two years, indicating rapid adoption across government procurement.

The number of profile-completed sellers on the platform has increased from 3,339 to 25.45 lakh, while primary buyer organisations have grown from 1,707 to 1.37 lakh. Registered Micro and Small Enterprises (MSEs) have also risen from 2,424 to 12.25 lakh.

MSEs, Women Entrepreneurs And Startups Expand Participation
MSEs have fulfilled orders worth more than Rs 9.07 lakh crore, accounting for 45.6 percent of the platform's cumulative GMV. More than 2.24 lakh women-led MSEs have executed over 50 lakh orders worth Rs 99,147 crore, while 42,242 startups have secured procurement orders valued at over Rs 65,633 crore.

Study Highlights Cost Savings Through Digital Procurement
An IIT Delhi study covering FY 2023-24 to FY 2025-26 estimated that GeM generated Rs 86,571.69 crore in monetised benefits through price and process efficiencies, resulting in a net social saving of Rs 1,76,411.46 crore.

The study also found that GeM offered lower prices than other e-marketplaces for 74.3 percent of 101 comparable items, with spend-weighted savings of 13.6 percent.

Platform Cuts Transaction Costs To Improve Ease Of Business
To improve ease of doing business, GeM has reduced transaction charges from 0.50 percent to 0.30 percent, while exempting orders up to Rs 10 lakh from transaction fees.

As a result, 97 percent of all orders on the platform now attract no transaction charges. Vendor assessment fees have also been reduced by up to 92 percent.

According to an interim Axis My India survey, 92 percent of buyers expressed satisfaction with the platform, while 67 percent of sellers reported higher business volumes and 78 percent said they intended to continue using GeM.

AI-Driven Platform Strengthens Transparency In Public Procurement
The platform now digitises the entire public procurement process and uses AI and ML to detect suspected cartelisation, collusion and order splitting while generating data for evidence-based policymaking.

GeM CEO Mihir Kumar said the platform has made public procurement more transparent and will continue using AI and data-driven technologies to improve efficiency, competition and value for public spending.

(KNN Bureau)