Introduction

The Government e-Marketplace (GeM) portal is about to move quickly to implement a significant change: the ability to allow global tenders in FY26. This change will enable non-Indian suppliers to be able to offer goods and services to be procured by the Government of India (GoI). External suppliers would be welcomed under the new policy change due to recent bilateral trade agreements, one of the major being the UK-India Free Trade Agreement (FTA). This policy change has implications for the supplier competition landscape in India. The GeM is already processing significant amounts of procurement (goods + services). In summation, this policy change presents opportunities and challenges for the GeM marketplace.

What’s Changing: Global Tender Feature

• As reported by The Financial Express, GeM is expected to introduce its global tender enquiry function by the end of the ongoing financial year. This will be the procurement tenders for nations along with which India has completed or is in negotiations with for trade agreements.

• As per the India-UK Free Trade Agreement (FTA), companies in the UK can bid for Indian tenders, and those with 20% or more UK content will be considered as 'Class II Local Suppliers' under India's Make in India initiative.
  

• Simultaneously, GeM is adding rate contract functionality. This allows government departments to lock in prices for goods/services for a fixed period, reducing frequent bidding for recurring purchases. 

Implications for Indian Suppliers

1. Increased Competition

• Allowing foreign companies will mean that domestic suppliers will face competition not only from Indian firms but from overseas ones with perhaps better pricing, technology, or scale.
  

• Indian suppliers will need to sharpen their offerings on cost, quality, innovation, and compliance to stay competitive.
  

2. Opportunity to Raise Standards

• Global norms might push Indian vendors to improve product standards, quality certifications (ISO, BIS, etc.), sustainability credentials, and faster delivery mechanisms.
  

• Firms that already comply with international standards are likely to be ahead in this transition.
  

3. Market Access & Export Partnerships

• With classification as Class II local suppliers under certain conditions, foreign firms can participate, which may lead to more partnerships. Indian firms might tie up with foreign entities, forming joint ventures or subcontracting, thereby learning and scaling.
  

• Also, exposing local suppliers to international competition often results in better processes, tighter margins, and higher skill levels.

What Indian Suppliers Should Prepare

Potential Challenges & Risks

• Foreign bidders might under-bid to capture market share, pushing local suppliers to dangerously low margins.

• Local content requirements might make foreign participation possible but not always advantageous if many goods/components must be manufactured in India.
  

• Regulatory and customs barriers, logistical issues can impose hidden costs for international players which might offset some advantages.
  

• Compliance burden and certification costs could rise for domestic firms that were previously squarely operating in domestic supply chains.

Early Data & Signals

• GeM already processes huge procurement volumes. As of mid-2025, the portal has registered over 2.8 crore orders worth more than ₹13.4 lakh crore across product and service categories.

• The portal offers over 10,000 product categories and over 330 service categories.
  

• The India-UK FTA has specifically triggered this shift; UK firms will now have access to government procurement via GeM under conditions of the agreement. 

Strategic Takeaways for Suppliers

• Start aligning product lines and operational processes with international standards even before this feature goes live.

• Identify your niche: products/services that are harder to displace or where you can show local advantages (speed, locality, relations).
  

• Monitor which trade agreements are signed and which supplier countries are being prioritized, to anticipate competition.
  

• Leverage Make in India, local content policies, and state incentives to offset competition from abroad.

Conclusion

The change to allow global tendering on GeM is one of the most significant changes to India's public procurement ecosystem. For Indian suppliers, this likely enhances the level of competition but also allows greater opportunities for scaling, innovation, and quality. Those who anticipate the change and invest in being prepared, and those who adopt quickly, are the ones most likely to benefit. For many, this may represent a pivotal moment in their careers with tendering, and those who adapt will benefit, and those who do not may be left behind.