GeM procurement GMV tops Rs 5 lakh crore in FY26 on the back of major upgrades

The Government e-Marketplace (GeM) portal has been significantly modified in light of free trade agreements (FTAs) and foreign investment proposals with major upgrades to support global tendering, said officials. The GeM platform -- a dedicated online marketplace that facilitates end-to-end procurement of goods and services by central and state ministries and PSUs, among others -- now supports purchases in currencies other than the rupee, they said.

The upgrades are set to enable central and state ministries, departments, PSUs and autonomous institutions to procure goods and services from across the globe. Experts say permitting foreign vendors on the platform will lead to healthier competition and better price discover, encouraging domestic vendors to optimise their pricing and efficiency.

What is GeM and what does it do?

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The platform facilitates procurement decisions, connects enterprises across regions to government demand and promotes economic inclusion, sustainability and transparency in public spending, according to an official statement.

The GeM platform was launched in August 2016. Today, it has thousands of product categories and hundreds of service categories. It is home to more than 1.5 lakh buyer organisations.

GeM GMV tops Rs 5 lakh crore in FY26

Meanwhile, a gross merchandise value (GMV) of Rs 5.03 lakh crore was recorded on the GeM portal in FY26, down 7.4 per cent on a year-on-year basis, according to an official statement. In FY25, the GMV was recorded at Rs 5.43 lakh crore. The decrease was primarily on account of a lower order value from CPSEs.

Overall, the platform's GMV was recorded to be at Rs 18.4 lakh crore, cementing GeM's position as the key digital public procurement platform.

GMV is a key revenue metric for digital platforms. It captures the total value of goods and/or services sold on a marketplace over a specific period.

GeM CEO Mihir Kumar said that the cumulative GMV of Rs 18.4 lakh crore reflects the buyers, sellers and institutions' confidence in a transparent and technology-driven procurement ecosystem.

Success at the central level is driving GeM adoption at the state level. Today, GeM is witnessing growing participation from states and UTs thanks to strong adoption by central ministries, departments and CPSEs.

State procurement rose 38.3 per cent in the year ended March 31, highlighting the category's growing role in the platform’s expansion.

Over two-thirds of FY26 procurement by MSEs

Micro and small enterprises (MSEs) accounted for 68 per cent of the total orders on GeM in FY26, accounting for 47.1 per cent of the total GMV recorded during the year.

Over 11 lakh MSEs registered on the platform received more than 51 lakh orders, amounting to Rs 2.36 lakh crore, during FY26. That marked growth of over 20 per cent over the year-ago period.

Also, more than 2.1 lakh women-led MSEs registered on the portal received orders exceeding Rs 28,000 crore -- up 28 per cent on a year-on-year basis.

Startups contributed significantly to the GMV, securing orders to the tune of Rs 19,000 crore during the year. That saw growth of 36 per cent over the previous year.

Role of technology in GeM operations

Technology continues to play a central role in the platform's operations.

The platform leverages AI, ML and advanced analytics to enhance transparency, efficiency and integrity in procurement processes, with key technology-driven interventions including ML-based catalogue validation and pre-sanity checks to reduce errors.

It also utilises real-time analytics for monitoring transactions and detecting anomalies.

FAQs related to the article

Q1 What is the Government e-Marketplace? What is its purpose

Launched in August 2016, it is an online platform that enables the transparent and efficient government procurement of goods and services. It replaces manual, paper-based tendering that was prone to delays, inefficiencies and manipulation, while improving transparency and accountability.

Q2 Who can use GeM?

All central and state ministries, departments, PSUs and autonomous institutions can use the portal to procure goods and services.

Q3 How does GeM ensure transparency?

It does so through e-bidding, reverse auctions, demand aggregation and real-time rate-tracking tools.

Q4 What are the purchase rules?

Valuables worth up to Rs 25,000 can be bought directly whereas those above that requires mandatory bidding or price comparison.

Q5 How does GeM help MSMEs?

It enables MSMEs to directly participate in government procurement.