In India, the government is one of the largest buyers of goods and services. It needs to buy everything from paper and pens to computers, furniture, construction work, vehicles, and even consulting services. These purchases are made by different departments, ministries, and public sector units. In the past, government buying was often slow, complicated, and sometimes lacked transparency. To improve this system, the Government of India launched the Government e-Marketplace (GeM).
GeM is an online platform where government departments can buy goods and services directly from sellers. It was launched in 2016 by the Ministry of Commerce and Industry. The main goal of GeM is to make public procurement transparent, efficient, and cost-effective.
In this article, we will explore in simple words how GeM Portal promotes transparency in public procurement and why it has become an important part of the government buying system.
What is GeM?
GeM stands for Government e-Marketplace. It is an online portal where government buyers and private sellers meet. It is like Amazon or Flipkart, but only for government use. Departments can search for products, compare prices, check seller ratings, and make purchases — all online.
GeM is open to all central and state government departments, public sector undertakings (PSUs), autonomous bodies, and local bodies like municipalities and panchayats. It is also open to sellers of all sizes — from big companies to small startups and artisans.
Objectives of GeM
The main goals of GeM are:
- Transparency – Remove middlemen and reduce corruption.
- Efficiency – Save time and money through digital processes.
- Competition – Allow more suppliers to take part and offer competitive prices.
- Inclusiveness – Allow MSMEs, startups, women entrepreneurs, and even handicraft makers to sell directly to the government.
- Ease of Doing Business – Make the process simple and paperless.
Why Transparency is Important in Public Procurement
Public procurement involves using taxpayer money to buy goods and services. When there is no transparency:
- There is risk of corruption or favoritism.
- Some suppliers may get repeated unfair advantages.
- Prices may be too high.
- Products may be of poor quality.
- Small businesses may be excluded.
Transparent procurement ensures that government money is spent wisely and fairly. Citizens have a right to know how public funds are being used. GeM helps achieve that by making the process open and visible to everyone involved.
How GeM Promotes Transparency
Let us now look at the different ways in which GeM promotes transparent public procurement.
1. Digital and Paperless Platform
Everything on GeM is done digitally. From registering, listing products, bidding, comparing, ordering, invoicing to payment — the process is fully online. This reduces human interference, paperwork, and the chances of manipulation. Earlier, files had to move from table to table for approvals, which caused delays and confusion. On GeM, there is trackable activity at each step. This makes it harder for any wrongdoing to happen unnoticed.
2. Open Access for All Sellers
On GeM, any business can register as a seller — whether it is a large company, a Micro, Small, or Medium Enterprise (MSME), or a startup. Even individuals, artisans, and self-help groups can sell their products and services. This breaks the monopoly of a few favored vendors. The playing field is level for everyone. More competition leads to better prices and services.
3. Product Standardization and Specifications
All products listed on GeM must follow standard specifications set by the platform. This helps prevent confusion about quality or quantity. It ensures that sellers do not overcharge by offering lower-quality products. Buyers also get a clear idea of what they are purchasing. GeM reviews and approves categories of products and services to maintain quality.
4. Transparent Pricing
One of the best features of GeM is price comparison. Buyers can see prices of the same product from multiple sellers in real time. This reduces the risk of overpricing. Sellers must update prices on GeM regularly and cannot change them during ongoing orders. If prices fall in the open market, they must offer the lower price on GeM too.
This transparency helps government departments get the best value for money.
5. Audit Trails and Record Keeping
Every transaction on GeM is automatically recorded and can be audited. This means there is always a digital trail of who did what and when. If there is a complaint or suspicion, authorities can check the records and take action. This accountability increases trust in the system.
6. No Human Middlemen
In traditional procurement, agents or intermediaries often played a role in winning contracts. This created room for manipulation and favoritism. GeM eliminates this by connecting buyers and sellers directly through the platform. Bids are evaluated automatically, and orders are placed digitally. This ensures that only genuine sellers with competitive offers succeed.
7. Rating and Feedback System
Just like on e-commerce websites, buyers can rate and review sellers on GeM based on their performance. Sellers with poor ratings may lose business in the future. This encourages sellers to maintain high standards. It also helps new buyers choose reliable vendors by checking their past performance.
8. Real-Time Reports and Analytics
GeM provides real-time data and dashboards to users. Government officials and policymakers can track:
- How much is being spent
- What products are being bought most
- Which sellers are active
- Delivery timelines and delays
9. Procurement Rules and Guidelines
GeM follows the procurement rules defined by the General Financial Rules (GFR) of the Government of India. These rules ensure:
- Fair competition
- No discrimination between sellers
- Timely payments
- Proper evaluation of bids
Features that Support Transparency
GeM has introduced several features to improve transparency even further:
a) RA (Reverse Auction)
In a reverse auction, sellers compete to offer the lowest price. The buyer gets the product at the best possible rate. The entire bidding process is transparent and visible to all participants.
b) BOQ-Based Bidding
For complex services like construction or event management, buyers can upload a Bill of Quantities (BOQ), and vendors can bid item-wise. This reduces ambiguity and allows fair evaluation.
c) e-Bidding and e-RA
GeM enables online bidding and online reverse auctions, which prevent offline negotiations or biased decisions.
d) Demand Aggregation
If multiple departments need the same item, GeM can pool the demand and float a single order. This reduces cost and avoids duplication of efforts.
GeM and Inclusiveness
Transparency also means giving equal chances to all types of sellers, not just big companies. GeM has taken special steps to include:
- MSMEs – Priority listing and special filters
- Women entrepreneurs – Special badges and support
- Startups – Easier registration and innovation categories
- Artisans and weavers – Products promoted under “One District One Product” (ODOP)
- Self-help groups (SHGs) – Listed as sellers for handmade items
By allowing these diverse sellers to access the government market, GeM promotes economic justice and social inclusion.
Benefits of Transparency on GeM
- Lower Costs – Prices are visible and competitive.
- Faster Procurement – Simple processes and fewer delays.
- Wider Choice – Buyers can choose from many sellers and brands.
- Improved Quality – Ratings and feedback improve standards.
- Fair Dealings – Equal opportunity for all.
- Public Trust – Citizens have more faith in how their money is used.
Challenges Faced by GeM
Although GeM has brought many positive changes, it also faces some challenges:
- Some government departments are still used to old procurement methods and resist the change.
- Internet access and digital skills are limited in rural areas, which can make it hard for small sellers to join.
- Training and awareness among sellers are needed to use the portal effectively.
- Delivery logistics for remote locations need improvement.
However, the GeM team is continuously working to overcome these challenges through training programs, local outreach, and regular system upgrades.
Success Stories of GeM
Since its launch, GeM has shown impressive growth:
- Thousands of government departments have made purchases.
- Lakh of sellers have registered and delivered orders.
- Crores of rupees have been saved through competitive pricing.
- MSMEs and startups have become key suppliers.
GeM has also received awards for transparency and innovation from national and international bodies.
Future of GeM
The future vision of GeM includes:
- Integrating with state procurement systems
- Bringing in more service categories
- Using Artificial Intelligence for smart buying decisions
- Promoting exports of Indian products to global government buyers
- Providing voice and language support for ease of access
Suggested read- list of item on Gem portal
Conclusion
Public procurement is a major area of government spending, and it must be handled with full honesty and responsibility. In the past, this area was often affected by inefficiencies and lack of openness. But with the launch of the Government e-Marketplace (GeM), a new era of transparent, fair, and efficient public procurement has begun.
GeM ensures that all government purchases are made in a way that is visible, accountable, and beneficial to the public. It cuts out unnecessary middlemen, invites fair competition, and makes it easier for even small sellers to participate. It not only saves money but also builds trust in the system.
By using technology smartly, GeM has shown that transparency and good governance can go hand in hand. It is a powerful example of how digital platforms can help transform public services for the better.
