• GeM has become a major public procurement platform with strong MSME participation, crossing ₹18.4 lakh crore in cumulative GMV and ₹5 lakh crore in FY2025–26 GMV, while MSMEs fulfilled 68% of total orders and contributed 47.1% of total GMV. 

• GeM opens wider market access for MSMEs across sectors, including manufacturing, textiles, food, electronics, IT, services, logistics, and green products, helping Tier-2 and Tier-3 businesses reach institutional buyers beyond local markets. 

• Success on GeM depends on active selling discipline, including regular bid tracking, updated listings, accurate product details, sustainable pricing, proper records, and working capital planning before accepting large orders. 

Government e-Marketplace (GeM) has crossed ₹18.4 lakh crore in cumulative Gross Merchandise Value (GMV), making it one of India’s most significant public procurement platforms¹. In FY2025–26 alone, GeM crossed ₹5 lakh crore GMV. MSMEs are playing a major role in this growth, fulfilling 68% of total orders and contributing 47.1% of total GMV. More than 11 lakh MSEs are registered on the platform, and these businesses received over 51 lakh orders worth ₹2.36 lakh crore. 

This growth shows a clear shift in India’s public procurement system. Government buying is becoming more digital, structured, and open to smaller businesses. For MSMEs, this creates a practical route to sell to government buyers, build formal order history, and expand beyond local markets. This blog article covers what is driving GeM’s growth, which sectors are contributing, and how more MSMEs can register and sell on the platform. 

GeM’s Growth from Procurement Portal to Public Marketplace 

GeM started as a government buying platform, but its scale has now become much larger. It is no longer only a place where government offices buy basic products. It has evolved into a large digital marketplace used by different public bodies for goods and services across categories. 

Today, GeM supports buying by various entities, such as Central Ministries, Government Departments, Central Public Sector Enterprises, State Governments, and Union Territories. A key sign of this adoption is State-level activity, which grew by 38.3% in FY2025–26, showing that demand is expanding beyond Central Government buyers. This gives MSMEs more access to public buyers across India. 

Many government requirements are regular and operational in nature. They are not always large, complex projects meant only for big companies. Public buyers need a wide range of everyday goods and services, including office supplies, furniture, uniforms, electrical goods, machinery parts, IT equipment, repair and maintenance services, transport and logistics, etc. 

This type of demand suits many MSMEs, as they already operate in these categories. A small business with clear documents, competitive pricing, reliable supply, and timely fulfilment can use GeM to build a steady order pipeline. 

What Is Driving the Massive Increase in GeM Procurement

GeM’s rise has been supported by a mix of policy push, platform improvements, and stronger seller participation. Government buyers are becoming more comfortable with digital systems, while MSMEs are seeing the platform as a serious sales channel. Here are the key drivers: 

• Higher adoption by government buyers: More departments and public bodies are using GeM for regular purchases. This reduces dependence on offline tendering and brings more buying activity into a digital system. 

• Wider participation by States and Union Territories: As State-level buying increases, local and regional MSMEs get more relevant opportunities. This is especially useful for businesses that may not have the capacity to serve distant national buyers immediately but can supply within nearby districts, cities, or states. 

• Stronger MSME participation: With more than 11 lakh MSEs registered, small businesses are moving from being passive listed suppliers to active sellers. Many are learning how to respond to bids, update catalogues, quote prices, and manage timelines. 

• Technology: AI and analytics are being used for catalogue checks and procurement quality. Bid Health Score and system checks help reduce abnormal pricing, technical rejections, and process errors. Buyers can compare sellers, prices, product details, and supply options in a more structured way. Sellers also get a clearer route to government demand. 

Enterprise Groups and Sectors Benefiting from GeM

GeM is creating opportunities for different kinds of businesses, from traditional micro and small enterprises to women-led enterprises and startups. Micro and Small Enterprises remain the largest contributors among MSME groups, supported by strong order participation across product and service categories. 

Women-led MSEs are also gaining visibility on the platform. More than 2.1 lakh women-led MSEs are registered on GeM, with orders worth over ₹28,000 crore and nearly 28% growth in order value. Startups have also secured orders worth more than ₹19,000 crore, with order value growing by over 36%, especially in technology, digital services, innovation-led products, and specialised solutions. 

How Can MSMEs Register on GeM 

Before joining GeM, MSMEs should keep basic business details ready. Proper preparation can reduce delays during onboarding and make the registration process smoother. 

The key details generally required include: 

• Udyam Registration 

• PAN 

• Aadhaar-linked mobile number 

• Business bank account details 

• GSTIN, wherever applicable 

• Business address 

• Email ID and mobile number 

• Product or service details 

• Quality certificates, wherever applicable 

The registration process usually begins by visiting the GeM portal and creating a seller account. After that, the business needs to complete verification, add bank and tax details, select product or service categories, and upload listings. Each listing should include pricing, specifications, delivery details, and relevant product or service information. 

Once registered, MSMEs should check bids and direct purchase opportunities regularly. Listing alone is not enough; active participation is necessary to identify suitable orders. 

How MSMEs Can Sell Better on GeM 

Selling successfully on GeM requires more than registration. MSMEs need to treat the platform as a formal sales channel with proper planning, pricing, records, and fulfilment systems. 

1. Choose Categories Where the Business Already Has Strength 

MSMEs should begin with product or service categories where they already have experience, supply capacity, and vendor relationships. This reduces the risk of delays, pricing errors, and quality issues during order fulfilment. 

2. Create Clear and Accurate Product Listings 

Product descriptions should be simple, specific, and complete. MSMEs should add correct specifications, product dimensions, material details, technical features, warranty information, and delivery terms wherever required. This helps buyers compare options properly. 

3. Use Good-Quality Product Images 

Clear product images can make listings more credible. MSMEs should avoid unclear, low-quality, or misleading images. For products such as furniture, machinery parts, uniforms, packaging material, and equipment, images can help buyers understand the product better before placing an order. 

4. Keep Pricing Competitive but Sustainable 

Price is important on GeM, but extremely low pricing can create problems later. MSMEs should calculate raw material costs, labour, packaging, delivery, taxes, and expected margins before quoting. A sustainable price helps the business fulfil orders without hurting cash flow. 

5. Update Stock and Delivery Timelines Regularly 

Listings should reflect actual stock availability and realistic delivery timelines. If stock information is outdated, the business may accept orders it cannot fulfil on time. This can affect seller credibility and future opportunities. 

6. Track Bid Opportunities Every Day 

GeM requires regular attention. MSMEs should assign one person to check bids, direct purchase opportunities, buyer requirements, and platform updates. Missing a relevant bid window can mean losing a suitable order. 

7. Read Bid Terms Carefully Before Applying 

Every bid may have specific conditions related to quantity, location, delivery timeline, quality standards, documents, experience, and certifications. MSMEs should apply only after checking whether they can meet all requirements. 

8. Maintain Proper Business Records 

GST records, invoices, dispatch proofs, delivery challans, purchase orders, payment records, and communication history should be maintained properly. Clean records help in order tracking, dispute resolution, and future credit assessment. 

9. Plan Working Capital Before Accepting Large Orders 

Government orders may require upfront spending on raw material, production, packaging, transport, or labour. MSMEs should check whether they have enough funds before accepting bigger orders. If borrowing is needed, the decision should be based on the order cycle and repayment capacity. 

10. Deliver on Time and Maintain Quality 

Timely delivery and consistent quality are important for building credibility on the platform. MSMEs that deliver reliably are better placed to receive repeat orders and strengthen their seller profile over time. 

Common Challenges MSMEs Should Prepare For 

GeM can open access to public buying, but MSMEs should be ready for operational and financial challenges. A business that prepares in advance can reduce errors, protect margins, and improve its ability to fulfil orders properly. 

Understanding GeM Categories and Bid Requirements 

MSMEs may initially find it difficult to identify the right product or service category. A wrong category selection or incomplete bid understanding can lead to poor visibility, rejected bids, or unsuitable order participation. 

Competing on Price While Protecting Margins 

GeM can be price-sensitive because buyers compare multiple sellers. MSMEs need to avoid quoting only to win an order. The final price should cover material cost, labour, packaging, delivery, taxes, and margin. 

Managing Documentation Properly 

Public buying requires accurate paperwork. Missing GST details, incorrect bank information, incomplete certificates, or weak invoice records can create delays. MSMEs should keep business documents updated before participating actively. 

Meeting Strict Delivery Timelines 

Government buyers often work with defined schedules. MSMEs should not accept timelines they cannot meet. Delays can affect credibility, payments, and future participation. 

Handling Larger Order Sizes 

Some orders may be bigger than regular local business volumes. MSMEs should check production capacity, supplier support, storage, labour availability, and logistics before accepting such orders. 

Arranging Working Capital for Order Execution 

Order fulfilment may require spending before payment is received. MSMEs may need funds for inventory, raw material, packaging, transport, or wages. Financing should be planned in line with the order size and expected payment cycle. 

Updating Catalogues and Product Details Regularly 

Outdated catalogues can create confusion for buyers. MSMEs should update prices, specifications, stock availability, delivery terms, and product images whenever there are changes. 

Avoiding Mistakes in Bid Submissions 

A small error in quantity, price, document upload, delivery condition, or certification requirement can affect bid eligibility. MSMEs should review every submission carefully before finalising it. 

Maintaining Quality and After-Sales Support 

Quality is important for repeat business and buyer trust. For products or services that require installation, warranty, repair, or support, MSMEs should have a clear after-sales process in place. 

The opportunity on GeM is wide for MSMEs, but success depends on preparation. Small businesses that maintain documents, price carefully, monitor bids, plan funds, and deliver on time can use GeM to access larger markets and public buyers. 

— Source:

¹Ministry of Commerce & Industry, PIB, April 2026