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. [1][2]
• Cumulative GMV ₹18.4 lakh crore; crossed ₹5 lakh crore in FY 2025-26 alone — flagged as a Digital Public Infrastructure (DPI) success story. [1]
• 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. [1]

3. Background & Evolution

• Launched 9 August 2016 by Ministry of Commerce & Industry to replace DGS&D (Directorate General of Supplies & Disposals). [2][3]
• 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. [2]
• 2022: Cabinet expanded mandate to allow Cooperatives as buyers on GeM. [4]
• 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). [1][2][5]

4. Core Static Facts

• Parent ministry: Ministry of Commerce & Industry → Department of Commerce. [1][2]
• Legal vehicle: GeM SPV — Section 8 company, 100% Govt-owned. [2][4]
• 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. [4]
• Cumulative GMV: ₹18.4 lakh crore (April 2026). [1]
• FY 2025-26 GMV: > ₹5 lakh crore. [1]
• FY 2024-25 GMV: ₹5.4 lakh crore. [2]
• Women-led enterprises onboarded: ~1.5 lakh (over 9 years). [2]
• 9th Foundation Day theme: "Ease, Access and Inclusion." [2]

5. Multi-Dimensional Analysis

Economic

• Generates measurable savings to exchequer via competitive e-bidding; rising GMV indicates scale shift from manual tendering. [1][2]
• Channelises govt demand to MSEs, startups, SHGs, artisans, Divyangjans — demand-side push for Atmanirbhar Bharat. [2]

Administrative / Governance

• Backed by GFR Rule 149; embodies "Minimum Government, Maximum Governance." [2]
• Reforms in 2024-25: abolition of caution money, lower vendor-assessment fees, transaction-charge cuts → 97% of orders exempt from charges. [2]

Social (Inclusion)

• 1.5 lakh women-led enterprises onboarded; explicit inclusion of SHGs, artisans, Divyangjans. [2]
• 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. [1]
• 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. [1]
• August 2025: 9th Foundation Day; FY 2024-25 closed at ₹5.4 lakh crore. [2]
• 2025: Cumulative GMV crossed ₹15 lakh crore milestone. [5]
• 2024-25: Caution money waived, vendor-assessment fees rationalised, transaction charges cut. [2]

7. Prelims Hooks

• GeM launched on 9 August 2016. [2]
• GeM SPV is a Section 8 (non-profit) company under the Companies Act, 2013. [2]
• GeM SPV established on 17 May 2017; Cabinet approved on 12 April 2017. [2]
• Parent ministry: Ministry of Commerce & Industry (NOT MeitY, NOT Finance). [1][2]
• Statutory hook: Rule 149, GFR 2017 mandates procurement through GeM.
• Replaced the older DGS&D procurement system. [2]
• Cooperatives allowed as buyers on GeM after 2022 Cabinet decision. [4]
• Cumulative GMV: ₹18.4 lakh crore (April 2026). [1]
• FY 2025-26 GMV: > ₹5 lakh crore. [1]
• FY 2024-25 GMV: ₹5.4 lakh crore. [2]
• Women-led enterprises onboarded: ~1.5 lakh. [2]
• 97% of orders exempt from transaction charges after 2024-25 reform. [2]
• 9th Foundation Day theme: "Ease, Access and Inclusion." [2]

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.