The Government e-Marketplace (GeM) is an online procurement platform, or a digital concept, launched by the Ministry of Commerce and Industry on August 9, 2016, to facilitate the purchase of common-use goods and services by government departments and organizations. The platform was created to solve the problem of inefficiency, lack of transparency, and corruption in the traditional, manual public procurement system. GeM is managed by the GeM Special Purpose Vehicle, a 100 percent Government-owned Section 8 (Non-profit) Private Limited Company under the Department of Commerce.
The mechanism is a paperless, cashless, and contactless end-to-end e-marketplace that connects government buyers with sellers, including Micro, Small, and Medium Enterprises (MSMEs). Its legal mandate is derived from the General Financial Rules (GFR) 2017, where Rule 149 makes procurement through GeM mandatory for goods and services available on the platform. Buyers can use methods like direct purchase for low-value items, or e-bidding and reverse e-auction for higher-value requirements.
GeM is closely connected to the General Financial Rules (GFR) and institutions like the Directorate General of Supplies and Disposals (DGS&D), which it replaced in 2016. It also promotes the MSME sector by reserving 25% of all central government procurement for them and offering purchase preference. Recently, GeM has undergone significant changes, including the discontinuation of the mandatory Caution Money Deposit, mandatory MSE reverification for service providers, and tightened enforcement of BIS certification for product quality. Furthermore, the platform is expanding its reach through integration with the Open Network for Digital Commerce (ONDC).