GeM vs Traditional Tendering: Which Is Better for Businesses in 2026?

In the rapidly evolving landscape of procurement and public purchasing in India, two major systems compete for a business’s attention: Government e-Marketplace (GeM) and Traditional Tendering. As we step deeper into 2026, it’s more important than ever for businesses big and small to understand these models and choose the one that aligns best with their growth goals, cash flow needs, and operational strategy.

What Is GeM?

The Government e-Marketplace (GeM) is an online platform launched by the Government of India to streamline procurement for goods and services by government departments, public sector units (PSUs), and autonomous bodies. Modeled on e-commerce principles, it allows sellers and service providers to list products and bid in an automated, transparent digital market.

What Is Traditional Tendering?

Traditional tendering refers to the offline or mixed procurement process where public agencies issue formal requests for bids (RFPs, RFQs, NITs). Suppliers submit sealed bids, which are then opened and evaluated by committee often involving paper documentation, manual verification, and regulatory compliance at various stages.

GeM vs Traditional Tendering - A 2026 Comparison

Let’s break down how these two procurement avenues stack up for businesses in 2026 across key dimensions:

1. Speed & Efficiency

GeM

• Entirely digital from registration and listing to bid submission and payment tracking.
• Automated rate discovery and faster order issuance.
• Reduces manual paperwork and human bottlenecks.

Traditional Tendering

• Often slower due to paper-based processes and manual evaluation committees.
• Multiple rounds of clarification and negotiations can delay execution.

Winner: GeM (in terms of turnaround time and reduced administrative delays)

Accessibility for Small & Medium Enterprises (SMEs)

GeM

• Simple online onboarding empowers smaller businesses to participate without intermediaries.
• Offers scheme incentives like SME reserved categories and preference to local suppliers under applicable policies.

Traditional Tendering

• Tougher entry barriers with complex documentation and bank guarantees.
• SMEs may face resource constraints for compliance and follow-ups.

Winner: GeM for inclusivity and democratizing access.

3. Transparency & Compliance

GeM

• Transparent price comparisons and digital audit trails discourage malpractices.
• Real-time monitoring reduces favoritism and human interference.

Traditional Tendering

• While rules aim for fairness, manual evaluation introduces potential delays and subjectivity.
• Greater risk of procedural irregularities if oversight is weak.

Winner: GeM for digital traceability.

4. Pricing & Competition

GeM

• Dynamic bidding and visible price trends increase competition among sellers.
• Often leads to competitive pricing and faster benchmarking.

Traditional Tendering

• Pricing may be more negotiated and can be influenced by industry relationships.
• Quantity contracts with long-term partners can offer stability but may not be competitively priced.

Winner: GeM for competitive rate discovery; Traditional can win when long-term strategic partnerships matter.

5. Legal & Regulatory Framework

GeM

• Governed by GeM policies and digital compliance frameworks.
• Easier to track statutory compliance like GST, PAN, GSTIN digitally.

Traditional Tendering

• Engages more extensive legal rules under procurement acts and state regulations.
• May involve additional scrutiny like performance security, technical evaluations, site inspections.

Winner: Depends on business maturity. Traditional could be stronger for big, custom, or compliance-intense projects; GeM for standard goods/services procurement.

6. Suitability by Business Type

Business Type	Best Fit
Start-ups / SMEs	GeM
Standard Goods & Services	GeM
Large Capital Projects & Specialized Works	Traditional Tendering
Long-term Framework Agreements	Traditional Tendering
Quick Turnaround Government Sales	GeM

Strategic Takeaways for 2026

• For New & Growing Businesses: GeM presents a low-barrier entry into government contracts with speed, transparency, and digital ease.
• For Established Contractors: Traditional tendering remains valuable especially where complex specifications, bespoke solutions, or long-term contracts matter.
• For Hybrid Strategies: Many businesses succeed by participating in both using GeM for product sales and early wins, while maintaining tender teams for specialized, high-margin contracts.

Conclusion

In 2026, there’s no one-size-fits-all answer. GeM stands out as the faster, fairer, and more accessible gateway for most businesses especially SMEs and first-time government suppliers. Traditional tendering, however, continues to serve enterprises with complex, high-value project needs.

The smartest strategy? Blend both. Use GeM to scale procurement wins and cash flow, while selectively targeting tenders that deepen expertise, market reputation, and long-term contracts.

With Classic Tenders as your reliable Gem portal consultant , our commitment is to offer tailored guidance and support, empowering your organization to unlock the complete potential of the Gem platform.

With a track record of assisting countless clients nationwide, our GeM services are renowned for their simplicity, security, and effectiveness.