The Rise of Digital Procurement in India: Role of GeM in 2026

In the last decade, India’s procurement landscape has undergone a profound transformation. What was once a largely manual, paper-heavy, and opaque process for public purchases has today evolved into a transparent, efficient, and inclusive digital procurement ecosystem driven chiefly by the Government eMarketplace (GeM)

As we stand in 2026, the narrative of public procurement in India is no longer about legacy systems and bureaucratic bottlenecks. It is about data-driven decisions, ease of access, level playing fields for sellers, accelerated government spends, and trustworthy mechanisms that benefit both buyers and sellers.

What Is GeM and Why It Matters

Launched in 2016, GeM was envisioned as a paperless, cashless, and contactless procurement portal eliminating age-old manual procedures that led to inefficiency, delays, and opportunities for corruption. Its founding principles are built around efficiency, transparency, and inclusivity.

Here’s what makes GeM pivotal:

• End-to-end digital procurement — from search and selection to bidding, ordering, and payment.
• Broad user base — central and state ministries, PSUs, government bodies, Panchayats, and cooperatives. 
• Massive seller participation — millions of sellers and service providers registered across categories, especially Micro & Small Enterprises (MSEs), startups, women-led enterprises and artisans.
• Real-time digital workflows — reducing procurement cycles, delays, and human intervention.

2026: Digital Procurement in Full Bloom

By 2026, digital procurement has shifted from being a policy idea to being an operational backbone for public spending in India. GeM’s own growth numbers indicate this change:

• Cumulative Transacted Value: Since inception, the platform has crossed ₹15 lakh crore in Gross Merchandise Value (GMV) — a testament to its scale in public procurement.
• Large Buyer and Seller Network: GeM now connects over 1.6 lakh government buyers with millions of sellers and service providers across India.
• Extensive Catalog: The platform offers thousands of product and service categories, spanning everything from office supplies and vehicles to consulting, facility management, cloud services and emerging tech solutions.

Impact on Government Efficiency and Transparency

Digital procurement through GeM has:

• Reduced Corruption and Manual Interference: Every transaction and bid is visible on the platform, eliminating back-door deals and subjective decision-making.
• Competitive Pricing and Savings: With transparent price comparisons and automated auctions, government departments can access better deals an independent study estimated buyer savings of roughly 9.75% on median prices.
• Fast-Tracking Services Procurement: Not just goods — services procurement on GeM has seen massive growth, indicating more reliance on digital procurement for consultancy, facility management, and tech engagements.
• Asset Management beyond Procurement: GeM has also become a platform for government asset disposal, enabling departments to efficiently sell and recycle assets like old vehicles and electronics further expanding its utility.

Driving Inclusivity and SME Growth

One of GeM’s most transformative features lies in how it level-sets opportunities:

• MSMEs, startups, and women entrepreneurs now access government procurement opportunities that were once hard to reach.
• Initiatives like SWAYATT (Startups, Women and Youth Advantage Through e-Transactions) have actively increased participation of priority seller groups.
• Benefits extend to remote and underserved regions, thanks to integrations with networks like Common Service Centres and India Post services.

Challenges and the Road Ahead

While GeM’s success is undeniable, digital procurement continues to face challenges:

• User Experience & Awareness: Smaller vendors and some government officials still face difficulties navigating the portal and managing digital processes.
• Integration with Global Procurement: With trade agreements like the India-UK FTA on the horizon, GeM is exploring global tendering capabilities to enable international participation.
• Balancing Standardization with Flexibility: Some departments seek more customization and advanced API access for system integrations a space ripe for digital innovation.

Despite these, the future of procurement in India looks digital, transparent, and inclusive.

The rise of digital procurement in India is a tale of technological evolution meeting governance reform. The Government e-Marketplace has not only modernized public purchasing but has democratized opportunity, enhanced transparency, and strengthened India’s Digital India vision.

As we advance through 2026 and beyond, GeM’s role will continue to be central shaping not just how procurement happens but who gets to participate and how efficiently public resources are utilized.

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