The encyclopedia · Strategy & Leadership · Strategic decision · 2016–2023
India put all government buying on one open marketplace
GeM replaced India's fragmented public procurement with an open online marketplace; FY2022-23 gross value hit ₹2,01,113 crore.
Government e-Marketplace (GeM)
the move
Indian public buying was spread across thousands of local processes, with little price visibility and high administrative cost. In August 2016 the government launched the Government e-Marketplace to concentrate buying on a single online platform.
GeM lets registered sellers list on standardized catalogs and lets buyers compare, rate and purchase directly, with features like reverse auctions for bulk needs. Prices and transactions are visible, so overpricing is harder to hide.
The marketplace scaled fast: in FY2022-23 gross merchandise value reached ₹2,01,113 crore, and the government reports cumulative savings above ₹40,000 crore since inception.
Studies cited by GeM's CEO put minimum platform savings at about 10%, worth over ₹30,000 crore of public money — the gain comes not from squeezing anyone but from letting competition and visibility do the work.
why it works
- One catalog makes prices comparable, which is the precondition for competition.
- Direct buyer-seller contact cuts intermediaries and delay.
- Published transactions create a public record that disciplines both buyers and sellers.
what transfers
Transparency is a procurement strategy: publishing what governments pay and letting suppliers compete on one platform drives prices to market levels — India reports about 10% savings.
what came after
GeM has become one of the world's largest government procurement platforms, expanding into services and continuous bidding, and its savings figures are cited in India's budget documents.
references
- Government e-Marketplace registers highest ever Gross Merchandise Value of more than ₹2 lakh crore in FY 2022-23
- Government e-Marketplace (GeM) suitably placed to exceed its ambitious target of ₹1.75 lakh crore
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