GeM Achieves ₹18.4 Lakh Crore GMV, Emerges as Key Digital Public Procurement Platform
1. At a Glance
- Government e-Marketplace (GeM) is India's National Public Procurement Portal for goods/services bought by Central/State govt, PSUs and autonomous bodies. [S1][S2]
- Cumulative GMV ₹18.4 lakh crore; crossed ₹5 lakh crore in FY 2025-26 alone — flagged as a Digital Public Infrastructure (DPI) success story. [S1]
- Examinable as: e-governance (GS-II), MSME/startup inclusion (GS-III), DPI/transparency in procurement (GS-II/III).
2. Why in the News
- 6 April 2026 PIB release: GeM announced cumulative GMV ₹18.4 lakh crore, with FY 2025-26 GMV crossing ₹5 lakh crore, alongside rising MSE, women-led enterprise and startup participation. [S1]
3. Background & Evolution
- Launched 9 August 2016 by Ministry of Commerce & Industry to replace DGS&D (Directorate General of Supplies & Disposals). [S2][S3]
- GeM SPV incorporated 17 May 2017 following Union Cabinet approval on 12 April 2017 as a Section 8 (non-profit) company under the Companies Act. [S2]
- 2022: Cabinet expanded mandate to allow Cooperatives as buyers on GeM. [S4]
- Milestones: ₹3 lakh cr GMV in 11 months of FY23-24; ₹4 lakh cr (FY24-25, 10 months); ₹5.4 lakh cr in FY 2024-25 (9th Foundation Day); ₹15 lakh cr cumulative crossed in 2025; ₹18.4 lakh cr cumulative (April 2026). [S1][S2][S5]
4. Core Static Facts
- Parent ministry: Ministry of Commerce & Industry → Department of Commerce. [S1][S2]
- Legal vehicle: GeM SPV — Section 8 company, 100% Govt-owned. [S2][S4]
- Mandatory procurement: under Rule 149 of General Financial Rules (GFR), 2017, GeM is mandatory for Central Govt buyers for listed goods/services.
- Coverage: Central + State Govt ministries, departments, PSUs, autonomous bodies; Cooperatives added as buyers in 2022. [S4]
- Cumulative GMV: ₹18.4 lakh crore (April 2026). [S1]
- FY 2025-26 GMV: > ₹5 lakh crore. [S1]
- FY 2024-25 GMV: ₹5.4 lakh crore. [S2]
- Women-led enterprises onboarded: ~1.5 lakh (over 9 years). [S2]
- 9th Foundation Day theme: "Ease, Access and Inclusion." [S2]
5. Multi-Dimensional Analysis
Economic - Generates measurable savings to exchequer via competitive e-bidding; rising GMV indicates scale shift from manual tendering. [S1][S2] - Channelises govt demand to MSEs, startups, SHGs, artisans, Divyangjans — demand-side push for Atmanirbhar Bharat. [S2]
Administrative / Governance - Backed by GFR Rule 149; embodies "Minimum Government, Maximum Governance." [S2] - Reforms in 2024-25: abolition of caution money, lower vendor-assessment fees, transaction-charge cuts → 97% of orders exempt from charges. [S2]
Social (Inclusion) - 1.5 lakh women-led enterprises onboarded; explicit inclusion of SHGs, artisans, Divyangjans. [S2] - Connects rural/tribal sellers directly to government demand bypassing intermediaries.
Technological (Digital Public Infrastructure) - Positioned as a Digital Public Procurement Platform — joins UPI/DigiLocker family as a stack-style DPI. [S1] - Enables paperless, contactless, cashless procurement.
Ethical / Transparency - Reverse auction + e-bidding reduce discretion → tackles corruption in govt procurement (CAG-flagged in earlier DGS&D era).
6. Recent Developments (last 12-18 months)
- April 2026: GMV crosses ₹18.4 lakh crore cumulative; FY25-26 alone > ₹5 lakh crore. [S1]
- August 2025: 9th Foundation Day; FY 2024-25 closed at ₹5.4 lakh crore. [S2]
- 2025: Cumulative GMV crossed ₹15 lakh crore milestone. [S5]
- 2024-25: Caution money waived, vendor-assessment fees rationalised, transaction charges cut. [S2]
7. Prelims Hooks
- GeM launched on 9 August 2016. [S2]
- GeM SPV is a Section 8 (non-profit) company under the Companies Act, 2013. [S2]
- GeM SPV established on 17 May 2017; Cabinet approved on 12 April 2017. [S2]
- Parent ministry: Ministry of Commerce & Industry (NOT MeitY, NOT Finance). [S1][S2]
- Statutory hook: Rule 149, GFR 2017 mandates procurement through GeM.
- Replaced the older DGS&D procurement system. [S2]
- Cooperatives allowed as buyers on GeM after 2022 Cabinet decision. [S4]
- Cumulative GMV: ₹18.4 lakh crore (April 2026). [S1]
- FY 2025-26 GMV: > ₹5 lakh crore. [S1]
- FY 2024-25 GMV: ₹5.4 lakh crore. [S2]
- Women-led enterprises onboarded: ~1.5 lakh. [S2]
- 97% of orders exempt from transaction charges after 2024-25 reform. [S2]
- 9th Foundation Day theme: "Ease, Access and Inclusion." [S2]
8. Mains Relevance
- GS-II: e-Governance — Applications, models, successes, limitations; transparency & accountability.
- GS-III: Indian Economy — Mobilisation of resources; effects of liberalisation on industry; MSME ecosystem.
- Probable stems: 1. "GeM has evolved from a procurement portal into a Digital Public Infrastructure for inclusive growth." Discuss. (GS-III, 15 marks) 2. "Mandatory e-procurement through GeM reflects a shift from rules-based to outcomes-based governance." Examine. (GS-II, 10 marks) 3. Evaluate GeM's role in mainstreaming MSEs, women-led enterprises and SHGs into the formal economy. (GS-III, 15 marks)
9. Related Topics to Study Next
- GFR 2017 — statutory basis of mandatory GeM use.
- Digital Public Infrastructure (DPI) — UPI, DigiLocker, ONDC, GeM family.
- MSME definition (2020 revised) & Udyam Registration — supply side of GeM.
- Public Procurement Policy for MSEs, 2012 — 25% reservation including 4% SC/ST, 3% women.
- PM Vishwakarma & SVANidhi — artisans/SHGs that feed into GeM.
- Startup India (2016) — overlapping seller base.
- CVC e-procurement guidelines — transparency framework.
- ONDC — open digital commerce analogue in private trade.
10. Common Errors / Trap Areas
- Confusing GeM (Commerce Ministry) with MeitY initiatives like DigiLocker/UPI.
- Mixing launch year 2016 with SPV incorporation 2017.
- Treating GeM as a statutory body — it is a Section 8 company SPV, mandate via GFR Rule 149, not a parliamentary Act.
- Confusing cumulative GMV (₹18.4 lakh cr) with annual FY 2025-26 GMV (>₹5 lakh cr).
- Assuming GeM replaced DGS&D by statute — DGS&D was wound up administratively in 2017.
11. Sources
- [S1] GeM Achieves ₹18.4 Lakh Crore GMV… — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2249335 — (tier 1)
- [S2] GeM marks 9th Foundation Day; ₹5.4 lakh crore GMV in FY 2024-25 — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2154136 — (tier 1)
- [S3] Government e-Marketplace celebrates its 8th Foundation Day — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2043889 — (tier 1)
- [S4] Cabinet approves expanding GeM-SPV mandate to allow Cooperatives as buyers — https://www.pib.gov.in/PressReleasePage.aspx?PRID=1830120 — (tier 1)
- [S5] GeM Surpasses ₹15 Lakh Crore in Cumulative GMV Since Inception — https://www.pib.gov.in/PressReleseDetailm.aspx?PRID=2160553 — (tier 1)