The Government e-Marketplace started as a procurement website but has changed into an evolving marketplace with a wider range of products, services, and sellers available for customers (39). For the MSMEs out there, the GeM Platform currently includes over 11,000 product categories and has 344 service categories available for purchase today, plus an additional 4 specialty marketplaces—Womaniya, Saras Collections, ODOP Bazaar, and Startup Runway that have been designed specifically to create opportunities for businesses that previously may not have been able to benefit from the traditional way of doing business with the Government of India.
As well as continuing to expand its footprint in size, GeM also will continue to remain strategically focused. GeM targets specific categories within the platform so that they can empower certain communities and respond to actual Government of India needs. For MSME companies, especially those owned or managed by women, artisans, entrepreneurs from rural areas, and start-ups, new opportunities are available for selling to Government of India buyers who are currently seeking products or services similar to what you create and provide.
Understanding GeM's Expanding Category Universe
As of the beginning of 2025, eProcurement has a total of 11,073 product types and 344 service types. Compare these figures to the years 2018 and 2019, when there were less than 9000 product types and around 150 service types offered on the eProcurement platform. The growth of eProcurement has been intentional, based on real market demand and the need for product types to meet the procurement needs of government departments.
During the 2023-24 financial year, eProcurement launched 36 new service categories, which means that service procurements have now surpassed Rs 2.07 trillion (approximately 50% of eProcurement's total Gross Merchandise Value for the year). This growth is not simply for the sake of increasing the number of categories. It has filled real gaps that were created by government departments needing service providers but having no efficient method of procuring service providers.
As a small or medium-sized enterprise, these volume expansions are extremely important, as they allow for greater opportunities for "finding" a particular marketplace that suits your business. There are a number of possible categories where MSMEs may fit; they could supply specialty industrial parts or offer niche professional services. If your business is providing something that is distinctive and one-of-a-kind, GeM will work with you to develop new categories for your product, allowing your products to be available to the government.
The top product categories in 2024-2025 are fairly representative of the types of products that will be the most in demand in the upcoming years. They include coal (NTPC) from domestic sources; pipes (regular casing—ONGC); silico manganese according to IS standards; all-in-one PCs; and chassis with engines. The top services in terms of volume procured are transport and handling, mine development operations, facility management, information technology services, and manpower supply.
Special Marketplaces: Your Gateway to Government Buyers
MSMEs in particular industries benefit from the GeM marketplaces publicly. They are specifically targeting MSMEs, as they do not just provide additional levels of visibility, but they also provide unique outreach and brand support to those companies.
The Womaniya Marketplace has been launched as one of the largest initiatives in India focused on encouraging women entrepreneurs. The Womaniya is an e-commerce platform for products manufactured by women-owned micro and small enterprises and self-help groups. This directly supports the Government of India's initiative of reserving 3% of all Central Government Procurement for women-owned businesses. As of today, over 1.77 lakh Udyam-verified businesses owned by women have registered on Womaniya and completed transactions worth 46,615 crore rupees.
Womaniya products fall into many categories, including handicrafts, handloom products, jute and coir, bamboo, organic produce and spices, home decorative items, and office furniture from women-owned MSEs. If you are a female entrepreneur who sells any of these products, Womaniya provides you access to a much better business opportunity than you would receive from generic listings. When government buyers are identifying companies that meet their goal of procurement from women-owned businesses, they will be looking at products on Womaniya first.
Saras Collection is an initiative developed by GeM/JD-NRLM (Deendayal Antyodaya Yojana – the National Rural Livelihoods Mission), specifically targeting rural Self Help Groups with unbiased access to government agencies, without using intermediaries, to increase their market reach and revenue-generating potential. This collection contains a number of items falling into five main categories of utility items: handicrafts, handloom/textiles, office accessories, grocery/pantry, and personal care/hygiene items produced by SHGs from rural communities.
Saras Collection has also been designed to further develop the support structures already existing within the SHG community. GeM provides users a real-time dashboard that provides the SHG community and geographic areas (GAs) where they operate visibility to the products uploaded to GeM and the orders received and fulfilled by the SHG community, providing additional data to help with order fulfillment and factors that affected product availability, such as local events. As part of their training program for the SHGs, GeM has provided training manuals, online webinar training, videos of web-based training sessions, electronic books (eBooks), and FAQs (Frequently Asked Questions) to assist the SHG members and to help rural entrepreneurs who are entering the marketplace and may not be as computer literate.
During the initial phase of the program, GeM has received applications from over 913 SHG groups located in 11 different states, with 442 products uploaded for sale through GeM from these SHGs. Since then, the number of products uploaded for sale from the rural SHG groups has greatly increased, and they have been able to access government procurement opportunities that were previously unavailable to them.
ODOP Bazar is an initiative that celebrates the indigenous arts, crafts, and geographical indication products of India. There are currently 446 types of products listed on the ODOP Bazaar, including a variety of items with GI tags or designated as ODOP products. These products span from Pashmina shawls manufactured in Kashmir to Banarasi silks produced in Uttar Pradesh, from Mysore silks made in Karnataka to traditional wooden toy shops in Channapatna, and finally, from Darjeeling tea to Kangra paintings.
For artisans and craftspeople who create products using traditional methods and locally produced materials, ODOP Bazaar addresses a major concern—how to connect with government buyers who seek authentic products created locally but don't know where to find reliable sources. ODOP Bazar facilitates the process of discovering these products while helping to maintain the cultural identity and regional diversity of these products.
As an increasing number of government departments are using ODOP products as gifts, for using them in event decorations, for purchasing official souvenirs, or for using them in Cultural Exchange Programs, the ODOP Bazar offers the Aabhar Collection, which consists of over 120 different gift items priced between Rs.500 and Rs.25000, which have been specifically chosen for use in government events and official settings.
The "Startup Runway" platform provides a way for startups identified by the DPIIT to promote innovative products with IP protection. On this platform, startups can showcase their innovations in 14 globally recognized sub-sectors and do not have to meet all the technical specifications that have been defined for categories of products.
Startups have successfully fulfilled purchase orders for a total value of INR 35,950 crore through this platform, demonstrating that the government is actually purchasing innovative solutions from startups. The relaxed competition norms and dedicated visibility offered to startups through this platform provide an opportunity for startups to compete with established players in a more practical manner.
Service Categories: The Fastest Growing Opportunity Space
Service categories on GeM have exploded in 2024-25 to the point that they now represent the best opportunities for MSMEs, with over 80,500+ crore rupees in procurement in Q1 2024-25, with 344 service categories presently active.
The best 10 performing service categories are where demand is concentrated. Service contracts based on Percentage of Performance (PoP) show us where the highest percentage of contracts are, with handling/transport/mining services being the highest and mine development and operations coming in next. However, beyond these specialized industries, there are many other categories with opportunity and potential for regular MSMEs.
Facility management services are an example of how multiple services can be offered together as bundled services. Cleaning, sanitation, pest control, horticulture, waste management, and general maintenance represent the facility management service category. All types of government facilities, such as government buildings, government offices, government hospitals, government schools, and government facilities, all need to have some sort of facility management service on a continual basis as part of their maintenance program. The number of service providers in this category that are registered on GeM has now exceeded 33,000 in total, which also indicates how competitive but also active the volumes of orders for Facility Management Services through GeM are.
The Manpower Outsourcing service category represents the single largest service category by volume being procured through GeM. All types of government departments have been using GeM to hire every type of staff needed, including security guards, housekeepers, skilled technicians, IT professionals, administrative staff, etc. To date in FY 2024-25, GeM has facilitated the hiring of over 1 million manpower resources, highlighting the scale of this opportunity.
Information technology (IT) and professional services include many types of services, such as system implementation, software development, consulting, training, cybersecurity, and many technical services. With the acceleration of the digital transformation movement taking place across many government agencies, the result is increased demand for these types of services. Additionally, MSMEs that have the right type of technical talent are now able to bid on projects that were traditionally performed by larger IT companies.
Healthcare services are in their own distinct ecosystem within GeM, including human resource outsourcing for hospitals, kitchen and dietary services, healthcare sanitation, laundry services, biomedical waste management, etc. As more and more government hospitals across India expand their service offerings, these categories will continue to see strong demand.
AMC and CMC services are another category that provides ongoing, predictable revenue through Annual Maintenance Contracts (AMC) and Comprehensive Maintenance Contracts (CMC). Various government departments require regular maintenance for many different types of equipment, including air conditioning units, water purification systems, CCTV systems, fire alarm and safety equipment, elevators, uninterruptible power supply systems, and IT infrastructure. When you receive an AMC contract from a government department, you can predictably estimate future revenues for the length of that contract.
Vehicle and ambulance hiring also supports a variety of government department transportation needs—from regular daily use to emergency medical services (EMS). Some government departments are even leasing Electric Vehicles (EVs) through GeM as they respond to new government priorities such as sustainability.
MSME-Specific Benefits: Why Category Innovation Matters More for Small Businesses
The changing marketplace for goods and services is more important to Micro, Small, and Medium Enterprises (MSMEs) than it is for larger companies, and GeM’s structure provides distinct benefits based on that broader landscape.
1. One of the features of GeM that benefits a wider variety of businesses is the policy of ‘Purchase Preference’ for MSMEs within the L1+15% pricing range. Under the Purchase Preference provision, a business can match the lowest bidder and still receive up to 25% of the contract order quantity. This allows MSMEs, even if they are not the lowest-priced bidder but remain competitive, a realistic opportunity to obtain a share of government business. As the category changes, so too do MSMEs’ chances to secure government contracts; the more different categories exist in a single GeM portal, the more chances for MSME businesses to enter into an already contested business.
2. Another factor that helps MSMEs is the decrease in the EMD (Earnest Money Deposit) requirement for MSMEs from 2-5% of the total contract value to just 1% of the total contract value. This creates an opportunity for smaller companies to participate in larger contracts without having large sums of money available up front. When new categories open, the first MSMEs that bid have less competition and can establish themselves before the category fills up.
3. Another benefit for MSMEs is that some categories are exempt from the vendor assessment requirement for MSMEs, such as women-owned MSMEs, SC/ST entrepreneurs, artisans, self-help groups, and farmer producer organizations. This substantially decreases the compliance burden for all businesses to access GeM.
Moreover, they bind buyers working with governments to procure a minimum of 25% of their overall annual requirements from Micro, Small, and Medium Enterprises (MSMEs), including sub-targets of 3% to be purchased from MSMEs owned by women and of 4% to be purchased from MSMEs that are owned by Scheduled Castes (SCs) or Scheduled Tribes (STs). As additional categories evolve, and with them a growing number of products or services that qualify for Mandatory Procurement Quotas, more MSMEs are likely to be able to qualify for preferential procurement more than once.
The SAHAYAK initiative will establish a nationwide network of 6,000-7,000 trained and certified accredited trainers to assist MSMEs in navigating the platform and to define the best category for their products and services. The support network created by the SAHAYAK initiative helps MSMEs find, access, and take advantage of the wider range of categories created by the program.
How to Identify and Leverage New Category Opportunities
MSMEs should strategically think to take advantage of GeM's expanding categories. Rather than just registering and listing any and all items currently being produced, an MSME should study where the demand is headed and how to position the current products to address the emerging government needs.
The first step is to start monitoring the categories being added and changed on GeM. GeM will continue to notify users of new categories as they become available as well as changes to the current ones. Following GeM's official communications, checking the News Section of the GeM Portal, and subscribing to Seller Alerts will help ensure you do not miss any new opportunities as they are announced.
In addition, studying the procurement trends within your sector is essential in positioning your business to adapt and supply government needs that are changing in nature, and therefore you should not only focus on the production of traditional products but also on contemporary and specialized products. A good example of this is government departments are currently sourcing electric vehicles, solar equipment, smart city solutions, and digital infrastructure at record levels, so if you can adjust your business model to supply these new needs, you are positioning yourself for growth markets versus traditional products, which are now in a saturated market.
It may be beneficial to consider diversifying your product/service offerings on GeM. Many MSMEs have had success by operating in multiple categories and not simply limiting themselves to one category. For example, an MSME that operates as a facility management company could list services such as cleaning services, pest management, horticultural services, and waste management as an independent service offer. An MSME in the electronics industry may choose to offer products across several subcategories, including IT hardware, personal safety devices, and surveillance equipment. Since the GeM platform is designed to accommodate this flexibility, having more than one category or subcategory would provide an improved opportunity to win orders.
It is also important to explore categories that are currently underserved, where competition is not yet too intense. For instance, while most providers are focused on listing their products and services that are in high demand (e.g., smartphones, laptops), there may also be several types of specialized, niche products and services that are experiencing increased levels of demand for which there may be few good suppliers available. Being one of the first good suppliers to enter a new and emerging category will give your product and service the ability to have pricing power and better visibility than other suppliers who will follow.
If you qualify, make full use of the specialized marketplaces. If you can feature your offerings in Womaniya, Saras, ODOP, or Startup Runway, be sure to do so, and do not limit your product/service to a generic listing. The targeted visibility and attention you will receive from potential buyers in the specialized marketplaces can greatly enhance your chances of having your order accepted.
Making Your Category Listing Stand Out
Once you have identified the proper GeM categories for your business, it is important to have high-quality listings. With over 80 lakh sellers now registered on GeM, the competition in many of these categories has increased significantly. It is vital that your business stands out by having a high-quality listing.
It is critical that you have accurate and complete specifications for your product or service. The government buyer uses specifications to filter their search results, so if you fail to include all of the necessary information or provide vague details about your listing, you will not appear in relevant search results. For example, if you are selling office furniture and list only "desk," you should include specifics such as type of material, dimensions, weight capacity, compliance certification, warranty details, and any custom options that may be available.
When pricing your products in the GeM marketplace, you need to not only consider what it costs to produce the product but also how much your competitors are charging and what government buyers expect to pay. GeM provides tools for comparing rates, and government buyers often review multiple suppliers prior to placing orders. It is not required for you to be the cheapest supplier out there; however, if you offer reasonable pricing and offer higher quality and service than your competitors, that can help tremendously.
Certifications and compliance documentation will differentiate your company from your competitors. If your products meet the Bureau of Indian Standards (BIS), have International Organization for Standardization (ISO) certifications, or are compliant with other government mandates, clearly display those certifications. Many technical product categories have quality standards, and suppliers that demonstrate their compliance proactively will be favored by buyers.
Seller ratings and historical performance on GeM are key to improving your visibility in categories. The GeM platform uses seller delivery performance, buyer ratings, and order fulfillment performance when determining a seller’s ranking in the category search. Therefore, the first few orders you place through GeM are vital; ensure you deliver thoroughly, provide clear communication, and obtain positive ratings that will help you gain more volume in the category over time.
Green and Sustainable Categories: The Next Wave
Green and sustainable procurement has been growing rapidly over the last few years, with more government agencies creating procurement categories for everything from environmental sustainability to energy efficiency and eco-friendly products to help meet national commitments to climate change.
Examples of products that have shown a significant increase in procurement through GeM are solar panels, LED lighting, water conservation tools, waste-recycling systems, electric vehicles, and green building materials. For companies engaged in or able to create a product in the sustainability market, there will be many opportunities moving forward.
There are increasing pressures for net-zero emissions by the year 2070, which means that procurement practices will increasingly privilege suppliers that can demonstrate environmental responsibility in their operations. Procurement categories that had never been commonplace prior to now—electric vehicle charging infrastructure, energy management systems, and waste-to-energy solutions—are now being established as areas of active procurement with suppliers expressing interest.
Looking Forward: Category Innovation as Continuous Evolution
GeM is not static; rather, it is dynamic and changes constantly due to the needs of the government, changes in technology, and capabilities of suppliers. MSME’s therefore have a continual opportunity to adapt and engage with GeM, since new opportunities will continue to present themselves over time.
GeM as a platform has transformed from a basic, online marketplace for common items, including office supplies and furniture, to a full-fledged procurement tool to source goods and services, such as domestic coal, to specialized, professional services. This evolution of categories continues on as more government departments become aware of what is available through GeM.
MSMEs can benefit from the extensive universe of categories created through GeM to access new markets. In addition to the introduction of product and service categories, GeM also provides a range of specialized marketplaces for priority seller groups, MSME-friendly procurement policies, and an open and transparent procurement process that allows SMEs to compete. MSMEs in particular industries—including specialization manufacturing, niche services, traditional crafts, and innovative start-ups—will find that GeM provides them with access to an array of new and targeted markets that they may not have been able to access. With the expansion of positioned seller groups, small businesses can have more opportunities to compete and ultimately win in these kinds of specialized marketplaces.
GeM should be looked at as a marketplace that isn't set in stone but instead is changing daily with new category openings all of the time. For example, you could be a woman entrepreneur with products made from handlooms, or you might be part of an SHG based in the rural areas producing organic foods, or an artisan with GI-tagged crafts, or an innovative technology company, or if you are an MSME offering specialized services, then there are most likely category windows specifically aimed at government buyers so that you can place your products and services.
There is no doubt that GeM is similar to a fast-growing procurement marketplace, but what it does not mean is that the products and services that you have cannot find their place in GeM; rather, the question lies in whether you are prepared to locate the category window that suits your products or services and to seize the opportunity. You have a multitude of product category windows to choose from with more than 11,000 product categories, 344 service categories, and dedicated marketplaces for certain business types so you can find the window to gain access to government buyers.
