Over 18% of DPIIT-recognised startups now sell on GeM, says Union Minister Piyush Goyal

The Government e Marketplace (GeM) has marked its 8th incorporation day with record-breaking growth, cementing its position as a cornerstone of India's digital public procurement ecosystem. Since its inception in 2016, GeM has witnessed a remarkable 14-fold surge in Gross Merchandise Value (GMV), reflecting a transformative shift in how government entities procure goods and services.

“The platform has redefined public procurement through transparency, efficiency, and inclusion. More than just a marketplace, GeM is a movement - enabling empowerment…GeM is giving every enterprise a chance to grow and serve India,” said Union Minister Piyush Goyal in a recent post on LinkedIn on Saturday.

GeM has also become a powerful vehicle for inclusion. Of the 1.74 lakh startups recognised under the Startup India Mission, 18% are now on the platform. Additionally, 1.85 lakh women-led MSMEs and over 31,000 DPIIT-recognised startups are actively participating on GeM. Notably, Micro and Small Enterprises account for nearly 37% of the total order value, underlining the platform’s role in democratising access to government contracts.

In FY 2016–17, the platform processed just over 6,000 orders worth ₹422 crore. Fast forward to FY 2024–25, and that figure has skyrocketed to more than 7.2 million orders, with the total transaction value exceeding ₹5.43 lakh crore. The current financial year alone has already seen 5.2 lakh orders worth ₹40,392 crore.

Launched in record time—just five months—GeM was established following a decision by the Prime Minister based on recommendations from a Group of Secretaries. It was designed to replace the traditional Directorate General of Supplies and Disposals (DGS&D) system with a streamlined, digital alternative aimed at bringing transparency, efficiency, and speed to public procurement. Today, it offers over 10,800 product categories and 335 service categories, serving 1.64 lakh primary buyers and 4.2 lakh active sellers across the country.

The platform’s built-in tools—such as e-bidding, reverse e-auction, and demand aggregation—have helped buyers achieve up to 10% cost savings, while boosting procurement efficiency.

From a modest beginning to becoming a ₹5.43 lakh crore procurement powerhouse, GeM's eight-year journey reflects the broader digital transformation underway in India’s governance and economic landscape.