Quick Summary
GeM enables MSMEs and other sellers to sell directly to government departments.
GeM (Government e-Marketplace) is the Government of India's national online procurement portal, where central and state government ministries, departments, autonomous bodies and public sector undertakings buy goods and services from registered sellers and service providers. Launched in August 2016 and operated by the GeM SPV, a Section 8 non-profit company under the Department of Commerce (Ministry of Commerce and Industry), it replaced the older DGS&D rate-contract system with a paperless, contactless and cashless marketplace.
Legal basis
Rule 149 of the General Financial Rules (GFR) 2017 makes procurement through GeM mandatory for central government buyers wherever the required goods or services are listed on the platform. The portal enforces transparent price discovery through direct purchase, L1 comparison and reverse-auction bidding.
Procurement thresholds
| Purchase value | Permitted mode |
|---|---|
| Up to Rs 25,000 | Direct purchase from any GeM seller meeting the required quality, specification and delivery period |
| Rs 25,001 to Rs 5,00,000 | GeM seller offering the lowest price among at least three different manufacturers |
| Above Rs 5,00,000 | Bidding or reverse auction to the lowest-priced (L1) compliant seller |
MSME and startup preference
GeM operationalises the Public Procurement Policy for Micro and Small Enterprises (MSEs) Order 2012, under which buyers must source at least 25% of annual procurement from MSEs, including 4% from SC/ST-owned and 3% from women-owned enterprises. DPIIT-recognised startups and MSEs also get relaxations from prior turnover and experience criteria and exemption from earnest money deposit (EMD), lowering entry barriers to public tenders.
Key Points
- Online procurement platform
- Mandatory for government
- Direct selling to government
- MSME preference
- Transparent bidding