A public purchase ends with a supplier delivering something the government needs. Before that comes a less visible contest: who gets to offer a price, how the buyer compares it and whether the transaction leaves a record that can be checked. Government e-Marketplace changed the venue for that contest.
Launched on 9 August 2016, GeM put government buyers and suppliers on a common digital procurement platform. By 2024–25, its annual gross merchandise value had reached ₹5.4 lakh crore, according to the Commerce Ministry. In August 2026, the ministry reported cumulative GMV exceeding ₹20 lakh crore. Those figures establish extensive adoption over a decade. [1] [4]
A marketplace backed by purchasing rules
The portal’s growth was supported by more than voluntary enthusiasm. Rule 149 of the General Financial Rules requires ministries and departments to procure through GeM when the relevant goods or services are available there. The system supports direct purchases and, depending on the applicable rules and value, competitive bidding or reverse auctions. [2]
That gave the marketplace a dependable source of demand. Suppliers gained a common place to display offers and compete for orders, while buyers acquired tools to compare products and prices. The portal also expanded into services, so its growth cannot be understood simply as an increase in purchases of office equipment. [1] [3]
An online record creates opportunities for scrutiny: the specification, quoted price and purchasing decision can be examined against the rules. The presence of a record, however, is only useful if officials and auditors act on it.
The buyer still has work to do
The government’s own procurement manual makes that responsibility explicit. Buyers must establish that rates are reasonable, using comparisons such as previous purchases and the platform’s analytical tools. The manual also prohibits dividing a requirement into smaller purchases to avoid competitive procedures or higher approvals. [3]
These obligations explain why a digital marketplace cannot itself guarantee the cheapest suitable purchase. The specification has to be sound, suppliers have to compete meaningfully, and the delivered product or service has to meet the contract. Moving the order online does not remove those judgements.
GMV likewise measures the value of orders routed through the system, rather than savings made by the exchequer. A defensible savings estimate needs a comparison with what an equivalent purchase would otherwise have cost, including quality and delivery conditions. Rapidly rising GMV can also reflect the inclusion of additional buyers or kinds of procurement.
GeM’s documented institutional achievement is substantial: a shared marketplace became an established channel for public purchasing. Its performance at the level that ultimately matters can still be tested purchase by purchase—through the competition obtained, the price justified and the goods or services delivered.