While Government e-Marketplace (GeM) was established as a domestic government procurement platform in India, it has developed into a strategic tool that can assist Indian sellers to expand internationally. Through the use of the GeM platform, intelligent sellers can see that successfully completing government procurements within India can also provide opportunities for them to sell to international customers through World Bank-funded projects, other international development organizations' projects, intergovernmental seller-to-buyer relationships, and the credibility GeM provides when approaching potential foreign buyers. As the Government of India strives to achieve $2 trillion in exports by 2030, and the total transactions processed on the GeM platform exceed Rs 5 lakh crore each year, ambitious sellers will benefit from better understanding how to leverage their GeM presence to support their growth as exporters.
Many sellers may not realize the relationship between GeM and exports. However, the connection is very significant. Sellers who participate in World Bank-funded projects that are supported by the Government of India utilize the GeM platform for procurement. A successful project, through GeM, will provide vendors with credentials that are accepted by buyers not only in their country but also around the world. The Indian Government's various programs that combine domestic manufacturing and export promotion incentivize the buyer to use GeM procurement to validate the vendor's capability. As foreign buyers conduct their research to assess suppliers, GeM is being increasingly utilized as an authenticating source for verifying that a manufacturer is reputable and has a proven history of successful delivery. The operational discipline, quality control , and record-keeping procedures that are required for success on GeM are essential to prepare an exporter for successfully pursuing international markets.
Understanding Export-Linked Government Procurement on GeM
Export-linked government projects on GeM fall into several distinct categories, each offering different pathways for sellers to build international business connections.
GeM is the most direct connection between bank-funded projects and exports. Many infrastructure projects in India that the World Bank supports are now using the GeM portal to procure goods and services, ensuring transparency, competitive pricing, and greater efficiency when supplying products or services to these projects. Through the purchase of goods/services to fulfill these projects, suppliers will be adhering to the procurement standards established by the World Bank. This will create a recognized track record of credibility when approaching international buyers and participating in international tenders outside of India.
In 2016, the South Asia Procurement Innovation Award from the World Bank was awarded to GeM, and the World Bank has adopted GeM as a model for replication by other countries. As such, international recognition attached to your seller profile and the experience that you have with GeM will have a global reach. Many countries that want to create similar types of platforms are currently studying GeM's ecosystem, which could provide potential networking opportunities for Indian sellers who have established track records with GeM.
Procurement for government-to-government partnership projects is increasingly utilizing GeM to provide increased transparency. Whenever the Indian government enters into partnerships with foreign governments on joint development projects, such as developing infrastructure in developing nations neighboring India, programs for transferring technology, or projects to enhance the capacity to develop infrastructure in countries neighboring India, the Gem portal is frequently the preferred channel for procurement of goods/services. This gives suppliers who are fulfilling these orders direct access to all foreign nations' procurement requirements and international buyers.
The Make in India initiative fosters a strong connection between domestic sourcing and growth in exports. When you procure "Make in India" products through GeM, you have the opportunity to participate in a number of government-sponsored Export Promotion Schemes (EPS). The fact that government buyers are sourcing "Made in India" products via the GeM system assists in developing the local supply chain and providing manufacturers with the scale necessary to compete in the global market. Therefore, the more government buyers source "Make in India" products through GeM, the more they will contribute to a larger supply chain and ultimately create greater opportunities for export competitiveness.
As a result of their global operations or their export-related projects, Central PSUs such as Indian Railways, NTPC, and ONGC often utilize the GeM platform to procure goods for these projects. When you supply to PSUs for their foreign operations or export-related projects, you will have an opportunity for international exposure while using the same procurement system you are familiar with (the GeM system). Additionally, your delivery to Indian Railways for their Metro projects located in foreign countries will be delivered through the GeM system, yet, at the same time, is considered international business.
Building Export Credentials Through GeM Performance
Your GeM seller profile, along with your delivery data, can offer foreign buyers or suppliers an opportunity to use these documents as evidence of previous successful export activity. Here's how to build that credibility systematically.
Every delivery you make that receives a rating of five or every positive CRAC will impact the performance history. Increasingly today, international buyers wanting to conduct due diligence on potential Indian suppliers will rely on GeM profiles to effectively provide them with an independent, third-party validation of the past performance of Indian suppliers, in place of self-reporting from their website, which is unverifiable. Therefore, your GeM rating provides a verified performance record of the products and services received by the Government of India as a result of the successful delivery of products from your manufacturing plant.
You should also seek VA Certification from RITES. Displaying the VA badge on your GeM profile provides a clear indication to the foreign buyer that an independent third party has visited your manufacturing facility to verify that all aspects of your production process, quality systems, and business credentials are legitimate and compliant with the requirements of the Indian government. This confirmation will greatly assist in establishing your business as a credible potential supplier to foreign buyers that will be impossible for them to verify in person. Your VA certificate should therefore serve to provide potential foreign buyers with verifiable evidence that you have a legitimate ability to manufacture the products you sell.
To show your ability to handle complex logistics, create a record of your GeM delivery portfolio in writing by developing a case study of each significant GeM order you have delivered. Include details about your orders, such as order volume, delivery timelines from receipt to completion, the level of complexity involved, and the coordination required for delivering products to multiple locations. International buyers require proof that the seller has the experience necessary to handle the complexity of exporting.
To comply with GeM requirements, obtain internationally recognized quality certification for your products. You can use quality compliance through GeM for additional export quality certifications, such as CE marking for European countries, UL certification for the United States, and other destination market-based quality standard certifications.
Establish your financial credibility through continued transactions with government buyers using GeM. Your transaction history with GeM establishes the financial viability and working capital of your business. Banks that establish letters of credit or offer export financing tend to be risk-averse lenders who look favorably on sellers that maintain a consistent level of government order fulfillment. Export buyers who require payment using credit terms are more likely to work with suppliers who can verify their government order history.
Connecting GeM Success to Export Promotion Schemes
The Indian government runs numerous export promotion schemes, and demonstrating domestic manufacturing success through GeM strengthens your eligibility and attractiveness under these programs.
The various Production Linked Incentive Schemes across sectors reward manufacturers for their ability to meet agreed-upon production and sales targets. When calculating eligibility for PLI, all your GeM procurements are considered verified. The PLI schemes in the following sectors have specifically stated connections between domestic manufacturing scale and export competitiveness: electronics, pharmaceuticals, telecom, textiles, food processing, etc. Verified and transparent documentation of sales is needed by PLI organizations; hence, using GeM provides them with this required documentation as part of their application process.
The Interest Equalization Scheme (IES) provides exporters with interest subsidies on export credit. Manufacturers with established domestic sales via platforms such as GeM will be able to find bank financing more easily, as banks will view them favorably compared to those who have not demonstrated similar domestic sales. The selling history of manufacturers via GeM will form part of their credit profiles when presenting to banks regarding financing for export financing requests. Therefore, manufacturers using GeM could potentially qualify to receive lower interest rates on export financing through government programs.
The Export Promotion Capital Goods (EPCG) scheme allows exporters to import capital goods without paying import duties. In addition to being an effective way for exporters to obtain export licenses, your ability to demonstrate your manufacturing capabilities via your GeM supplier credentials enhances your EPCG application. GeM supplier credentials are an effective way for applicants to demonstrate to Customs authorities, who ultimately evaluate EPCG applications, that they possess verified manufacturing activity—i.e., demonstrated by GeM orders and vendor assessment certifications.
The Market Access Initiative (MAI) is a program administered by the Ministry of Commerce, which provides financial assistance to exporters who promote their goods and services internationally, including attending international trade shows, conducting market research to identify potential customers, and advertising their products or services internationally. Your presence on GeM shows that you are a bona fide manufacturer, as opposed to a trading intermediary, so this increases your attractiveness as an applicant for MAI assistance. Ministry officials responsible for allocating MAI funds prefer to allocate them to established manufacturers with verified production credentials rather than to companies without established production credentials.
The Trade Infrastructure for Export Scheme (TIES) is aimed at creating an environment that is conducive to the development of the export infrastructure in India. If you have a plan to expand your manufacturing capacity based upon international export markets, demonstrating your manufacturing credentials, as evidenced by your vendor assessment and fulfillment of GeM orders, will help strengthen your TIES application. The Government of India prefers to support proven manufacturers who have taken significant risks to develop and produce products for sale in international markets, rather than speculative ventures.
Leveraging GeM for International Tender Participation
When bidding on international tenders, such as government projects or international development bank projects, it can be much easier to succeed if you have established a solid foundation with GeM.
International development banks that include the World Bank, the Asian Development Bank, and the African Development Bank all maintain approved supplier lists for different types of projects. When Indian sellers apply for the pre-qualification process to be included on development bank supplier lists, their GeM credentials can be used as leverage in this process. Your GeM vendor assessment, quality certifications, delivery record, and financial stability can all be documented through your GeM transactions and will assist you when applying for prequalification.
There is a growing recognition among foreign governments using e-procurement portals of the validity of GeM credentials of Indian suppliers. Many countries are establishing e-procurement portals based on GeM, and these countries may eventually establish systems for mutual recognition of GeM's credentials and those of Indian sellers when registering on their portals. Although mutual recognition agreements are still being developed, informal recognition of the credibility of GeM is already providing benefits to Indian sellers.
UN agencies in charge of acquiring products or services needed for development activities around the world will keep supplier databases. An Indian company that is registered with the GeM platform and has an established positive history within GeM may provide evidence of that validation to a company applying to the UN Global Marketplace. UN procurement must go through a strict process of due diligence. GeM credential validation allows an Indian firm faster qualification as a UN supplier.
Using GeM is a way for multinational corporations that purchase in India to validate that an Indian firm is a legitimate supplier. When multinational corporations from other countries are looking for suppliers in India, the fact that you have a presence on GeM gives them confidence that you are a legitimate and verified vendor. The procurement teams at many multinational corporations also use GeM to perform initial checks for Indian supply options quickly before doing anything further with them.
More and more frequently, export consulting firms assisting foreign buyers in finding potential suppliers in India are using the GeM platform as their primary method for discovering and verifying suppliers. This means that instead of performing the supplier auditing process from the ground up, these firms leverage the verification capabilities already available through GeM. The more active you are on GeM and the higher your rating, the better your chances of being discovered and referred by these export consultants.
Export-Oriented Product Categories on GeM Worth Targeting
Some categories of goods on GeM have a better chance to connect to international markets because these categories support export-based businesses or have the highest growth in export demand from Indian suppliers.
Electronics and IT hardware produced in India and purchased on GeM allow Indian suppliers to achieve volumes that support their exports. The PLI program for electronics was created to establish companies that will become global players in the manufacturing world. The volume of sales by suppliers of the electronics and IT hardware through GeM is a major contributor in generating the scale needed for success in exports. For example, the tablets, laptops, networking and server products, along with many IoT devices, sold through GeM evidence that those products are manufactured to a quality that foreign purchasers place value on.
India is recognized as a leading exporting country in pharmaceuticals and medical devices. The sales made by Indian suppliers to hospitals of the Indian government through GeM validate those suppliers' credentials to be recognized by foreign purchasers of healthcare products. The degree of quality ratings for generic medicines, diagnostic equipment, hospital consumables, and surgical instruments sold through GeM indicates that suppliers of this category of goods are ready to export products within the highly competitive categories of the world.
Textiles and apparel produced in India have opportunities for exporting products. For example, uniforms sold through GeM to various government departments, institutional textile products for hospitals and schools, as well as technical textiles for manufacturing, are examples of high-quality textiles produced by Indian companies that will be interesting to export markets. The Made in India label associated with GeM goes hand in hand with the objectives of promoting exports.
There is growing interest from India, both locally and abroad, for renewable energy products. Due to the manufacturing scalability and technical validation of solar panels, inverters, batteries, and wind components manufactured in India and purchased via GeM, these products will succeed internationally. Countries around the world that are investing in renewable energy infrastructure are looking to India as a source for proven, successfully installed renewable energy products.
Indian companies that manufacture defense and security products under the Make in India program use GeM to procure products for the Indian defense industry. The success of supplying defense products through GeM will help establish credibility with respect to foreign countries' defense procurement agencies. As India's defense export business continues to grow, more emphasis will be placed on suppliers that have established credibility through GeM.
India has established a strong export base in engineering goods and industrial equipment. By selling through GeM to Indian Public Sector Undertakings (PSUs) operating in infrastructure and manufacturing segments, Indian manufacturers are able to develop credibility that will facilitate entry into export markets where buyers want reliable engineering product suppliers.
Practical Steps to Connect Your GeM Presence with Export Goals
If you're serious about using GeM as a stepping stone to export business, take these concrete actions to maximize the connection.
To begin optimizing your GeM Seller Profile on an international level. The GeM is meant for Indian government buyers, but your public seller profile can be seen worldwide. To make this happen, include product descriptions emphasizing compliance with international standards; if you have any experience exporting products, mention any certifications that are internationally recognized; and present your seller profile professionally since organizations searching for Indian suppliers may locate your profile through searches.
Secondly, pursue the orders created through the GeM platform by PSUs with international activity. There are numerous opportunities to fulfill GeM Orders with international components through the PSU Activities in International. Examples include Indian Railways Metro Projects in other countries, BHEL International Installations, and ONGC Foreign Exploration Projects, among others. These orders will help create history in your GeM Transaction History through International Delivery Experience, as well as provide opportunity for future orders through GeM.
Thirdly, actively participate in the seller events and training program held by GeM (Goods and Services Tax & Goods and Services Tax) on a regular basis. Although there are many GeM Workshops/Webinars held regularly, many of these programs have international buyers and export promotion agencies, who are researching the capabilities of Indian companies to supply goods and services. By participating in these events, this will allow you to expand your network beyond the online transactional level.
Fourthly, combine GeM credential verification with the membership of Trade Promotion Organizations. FIEO (Federation of Indian Export Organizations), Export Promotion Councils, and similar industry sector associations can support exporters. When an exporter approaches these organizations for export assistance, the exporter should present GeM credential verification as proof of their ability to manufacture and deliver products as promised. Having both government-verified credentials and membership in the relevant industry association(s) will give you a stronger export position.
Fifthly, use your success with GeM as an anchor client reference when communicating with prospective buyers who are abroad (overseas buyers). Successful sales to the Indian government's departments using GeM give overseas buyers confidence that you are capable of being a better supplier. You may say, “We supply the Indian government through GeM and have received a 4.8-star rating for over 200 orders.” Such references provide immediate credibility, whereas cold outbound sales efforts typically lack this credibility.
Sixthly, align your GeM offerings with your target export market(s). For example, if you are planning to export to the Middle East, then focus on those items/products on GeM that Middle Eastern buyers procure from India. Conversely, if you are planning to export to Africa, then concentrate on the types of products that are frequently imported from India by African countries. When you develop a strategic alignment to the specific export market(s) you are trying to reach, your track record on GeM becomes much more relevant.
Seventh, you should create product documentation in two languages. GeM operates in English and Hindi; however, creating catalogs, technical specifications, and marketing material in the export market's language while also creating a GeM-compliant English version will allow you to be in a stronger position for export opportunities when they arise. Therefore, creating and maintaining GeM standard documentation will provide you with a more seamless method of adapting your documentation to the export market.
Finally, you should establish a relationship with trade promotion organizations and export consultant companies. Let these companies know that you are on GeM and express your interest in potential export opportunities. These companies often receive inquiries from foreign buyers who are looking to find Indian suppliers, and they can connect inquiries to potential sellers. If you have strong GeM credentials and are on the radar of these organizations, your chances of receiving a referral are higher.
The Future: GeM's Growing International Footprint
The trajectory of GeM enables sellers to prepare for even more international presence. There is an increasing level of interest from the global market in replicating GeM's model, and the South Asia Procurement Innovation Award being given by GeM indicates the future possibilities for many more countries and their interest in similar e-procurement platforms, including establishing supplier databases that function with GeM.
As a seller on the GeM platform, you could take advantage of your credentials for ease of registration on other nations' e-procurement platforms, like those in Bangladesh, Sri Lanka, Nepal, and African nations and beyond. These relationships are still being developed, but by obtaining your credentials with GeM now, you will position yourself well for these opportunities.
International Development Banks have recently begun using GeM to fund their bank projects in India and may, in the future, create similar mechanisms in other countries that can be utilized through GeM credentials. If/when the banks begin offering references to suppliers based on GeM credentials outside of India, you will be in an excellent position as an established, high-rated seller on GeM.
Foreign nations that source products and services from India for their development initiatives may begin to utilize the Government e-Marketplace (GeM) as an avenue to verify prospective vendors and procure goods and services. Instead of conducting independent research on vendors and completing due diligence processes required by their governments, foreign governments may use GeM to search for and find Indian vendors who meet their qualifications. This represents a significant expansion in the role of GeM as a facilitator for Indian exports.
GeM is a primary example of how India's bilateral trade agreements can provide the framework for open, competitive, and technology-based public procurement. As India negotiates trade agreements with other nations, it is likely GeM will be explicitly referenced and could even provide a distinction for GeM-registered sellers with regard to their ability to access these markets preferentially.
The Bottom Line: GeM as Your Export Launchpad
While GeM focuses on specialty sales from domestic government procurement, intelligent seller partners realize the potential for international sales that come from developing successful commercial sales through the platform. The reputation created by having an established vendor assessment illustrates the vendor's third-party validated manufacturing capability; a proven history of delivering to demanding government buyers legal documents, quality certificates, vendor certification, and financial stability all demonstrate export market readiness.
Consider your presence on GeM as a strategic asset that allows you to fulfill government orders while at the same time creating export credentials. Each excellent fulfillment of order, 5-star rating, quality certificate, and continuous improvement made with GeM will help prepare your company for the export market.
The Indian Government's goal of $2 trillion in exports by 2030 will require manufacturers from all sectors to participate. Sellers utilizing GeM represent exactly the verified, capable, and quality-focused manufacturers India will utilize to accomplish export objectives. By linking your success on GeM with Export Promotion Schemes, International Tenders, and Outreach to Foreign Buyers, you will create synergies that enhance your International Business Development.
Create an excellent GeM account with high customer feedback, a completed vendor assessment, quality certificates, and a history of consistently delivering products on time. Use your high-quality GeM account when exploring export opportunities such as international tenders, export promotions, and conversations with overseas buyers. Use your GeM performance history as verified third-party proof of your ability to manufacture and deliver goods reliably.
From being a supplier to local federal governments to being an exporter on an international scale has never been easier; using GeM gives you the foundation for credibility needed to make the transition easier. Utilize the GeM platform strategically, not simply as a means of transacting; the success you achieve through your government bidding efforts should serve as the launching point for your export efforts.
