India’s national public procurement platform, Government e-Marketplace (GeM), has recorded cumulative Gross Merchandise Value of over 20 lakh crore rupees in the ten years since its launch, according to News on AIR. Addressing a press conference in New Delhi, GeM CEO Mihir Kumar said the platform’s business grew from 422 crore rupees in 2016-17 to over 20 lakh crore rupees now, and that over the past decade GeM has emerged as a cornerstone of India’s digital governance ecosystem.
A decade of transformation in public procurement
GeM was launched on 9th August 2016 to transform public procurement through technology, transparency, efficiency and good governance, the official news agency reported. Mr Kumar said that today all States are onboarded on the GeM platform and that it will soon reach out to Urban Local Bodies and Gram Panchayats to expand its business. The platform’s evolution from a 422 crore rupee operation to a 20 lakh crore rupee marketplace reflects the scale of digital procurement adoption across India’s government supply chains.
GeM has emerged as a cornerstone of India’s digital governance ecosystem.
Price advantage over private e-marketplaces
According to a study done by IIT Delhi, items sold on GeM were cheaper on 74 per cent of items compared with other e-marketplaces such as Amazon, Flipkart and India Mart. This price competitiveness is a key metric for B2B buyers evaluating procurement channels, especially for sellers and suppliers who must position their pricing against benchmarks on private marketplaces. The study’s findings indicate that GeM’s procurement model consistently delivers lower prices for government buyers across most product categories.
Seller and MSME base expands sharply
The number of sellers on GeM has grown from around three thousand to over 25 lakh, while registered Micro and Small Enterprises (MSEs) have risen from around two thousand to more than 12 lakh, Mr Kumar informed. That growth represents a substantial deepening of the platform’s supply base, giving procurement officers a wider set of suppliers and giving small enterprises direct access to government procurement demand.
| Metric | 2016-17 | Current |
|---|---|---|
| Cumulative business value | 422 crore rupees | Over 20 lakh crore rupees |
| Number of sellers | ~3,000 | Over 25 lakh |
| Registered MSMEs | ~2,000 | More than 12 lakh |
Outlook for B2B marketplace participants
For marketplace operators and cross-border sellers monitoring India’s public procurement landscape, the GeM data reported by News on AIR shows a platform that has scaled from a few thousand sellers to over 25 lakh and now covers every Indian state. The coming expansion to Urban Local Bodies and Gram Panchayats implies that the addressable procurement network will extend to sub-district levels. The IIT Delhi comparison with Amazon, Flipkart and India Mart suggests that GeM’s pricing model is a competitive force that private e-commerce marketplaces must factor into their own B2B pricing strategies. Sellers already on those platforms may need to review their price positioning given the study’s finding that GeM items were cheaper on 74 per cent of comparable products. The figures reported by the CEO — from 422 crore rupees in 2016-17 to over 20 lakh crore rupees now — underscore the sustained growth trajectory of India’s flagship public procurement digital marketplace.
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