If you are a supplier on the Government e-Marketplace or are considering joining, then this year has indeed seen some of the biggest developments in the history of the platform. GeM crossed Rs 5 lakh crore in gross merchandise value well ahead of the end of this financial year, dramatically slashed transaction charges, and hired over a million manpower resources through the platform. These aren't just numbers on a press release; they represent real opportunities for businesses like yours to grow with India's fastest-expanding public procurement ecosystem.
Let's break down what's actually happened in 2024-25, what these policy changes mean for your business, and how to position yourself to benefit from this unprecedented growth.
The Rs 5 Lakh Crore Milestone: Breaking Records Before Year-End
Here's something that caught everybody off guard. GeM crossed the Rs 5 lakh crore GMV mark more than 18 days before the financial year 2024-25 concluded. What's even better? The platform jumped from Rs 4 lakh crore to Rs 5 lakh crore in less than 50 days. That's the kind of acceleration which tells you something fundamental has shifted in the way government procurement works in India.
To put that in perspective, the platform transacted a whopping Rs 1.24 lakh crore in just the first quarter of 2024-25, marking a phenomenal 136% quarter-on-quarter growth over the previous year. GeM has now become officially the largest procurement platform in India, and is well on its way to becoming the largest in the world by volume. South Korea's platform may still be ahead but not at this rate for too long.
What does this explosion in transaction volume really mean to you? More Government buyers are using the system more actively, more budgets are being allotted through GeM, and more purchase orders flow through the system. Very literally, every department-head from central ministries to state PSUs to local bodies-is increasingly using GeM as its main procurement channel.
The platform now serves more than 1.6 lakh registered government buyers at all levels of administration. That is not a bigger market but a more varied one, with different requirements, budgets, and needs related to procurement.
Transaction Charge Revolution: Making GeM More Affordable Than Ever
One of the biggest policy wins for suppliers would be the implementation of a new and revamped revenue policy on GeM in August 2024. Transaction fees on the platform were previously taking large chunks out of your margins. But things have changed, and it's a completely new game.
So here’s what it means. For orders below Rs 10 lakh, GeM will charge no fees at all. That’s zero. Huge news for MSMEs and suppliers, who normally carry out orders that might be smaller. You can carry out business worth Rs 10 lakh without having to pay anything on GeM.
For orders valued at Rs 10 lakh and Rs 10 crore, the transaction fee reduced from 0.45 percent to a mere 0.30 percent. That’s a 33 percent reduction on what you will be paying as you carry out your business on the site. You will be paying Rs 7,500 less on a Rs 50 lakh order.
However, for orders beyond Rs 10 crore, the maximum rate has been lowered from an astonishing 72.5 lakh to 3 lakh. That’s massive news for large suppliers who deal with larger contracts. Just think about it: You have secured an order worth Rs 50 crore. Earlier, your transaction cost would have been Rs 22.5 lakh. Now, it will not cross Rs 3 lakh.
The annual milestone fee stands at Rs 10,000 + Taxes and will be applicable only if your cumulative seller merchandise value exceeds Rs 20 lakh in a given financial year. But wait, there’s more. Transaction fees kick in only once you breach the Rs 20 lakh milestone. Prior to that, all orders are completely charge-free.
It boils down to actual money staying in your pocket. A medium-sized supplier operating at Rs 2 crore a year on GeM would be looking at a savings amount of Rs 3 lakh or more per year. That's working capital that can be reinvested.
Service Procurement Explodes: 1 Million Manpower Resources Hired
The growth of the service segment on GeM has been absolutely phenomenal in 2024-25. The platform this fiscal year achieved a big milestone with over a million manpower resources being hired through it, changing the trend of how government departments fulfill their staffing needs.
Service procurement crossed Rs 80,500 crore in just the first quarter of 2024-25, with more than 330 service categories now available for government buyers. It is not about the numbers; it is about the fact that the platform has started to become the default channel for government departments to hire everybody from security personnel and housekeeping staff to IT professionals to facility managers.
Currently, more than 33,000 service providers are registered on GeM, offering services across skilled, semi-skilled, and unskilled categories. Everything from demand for data entry operators and horticulture staff to specialized technical professionals and administrative personnel falls under it.
What makes this particularly interesting for service businesses is the structured, standardized approach GeM brings to service procurement. Buyers can engage manpower based on minimum wages or fixed remuneration, with clear service level agreements and transparent payment terms. This removes much of the ambiguity that used to plague government service contracts.
Another remarkable achievement is the insurance services category introduced in January 2022. The cumulative benefit of insurance coverage on GeM has crossed more than Group Mediclaim, Personal Accident, and Term Insurance policies to over 1.3 crore beneficiaries. In addition to health and life insurance, the latest product categories on the portal include asset insurance, transit and marine insurance, liability insurance, livestock insurance, and motor insurance.
MSME and Startup Benefits: The SWAYATT Impact
The SWAYATT Initiative achieved its sixth year in 2024-25, and it has had a remarkably qualitative impact on engaging priority seller groups within the government procurement basket. As of February 2025, GeM has brought on board more than 29,000 start-ups and 1.8 lakh women entrepreneurs with Udyam verification.
MSMEs have truly made GeM an accessible platform. GeM presently boasts more than 10.42 lakh MSME sellers and service providers. GeM is, itself, the biggest platform for small businesses wanting access to government buyers. The earnest money requirement for MSMEs stands at a mere 1% of the contract value. This makes it easier for MSMEs to access larger contracts.
Startups have satisfied an amount of Rs 35,950 crore on GeM, and this goes on to show that it is more than lip service that GeM is paying these new businesses. Women entrepreneurs have also made up 8% of the total sellers, and an amount of Rs 46,615 crore has been fulfilled by women-owned MSMEs.
The portal has also introduced special market sections, such as Womaniya Initiative, which aims to display products made either by women entrepreneurs or women self-help groups. The market sections include handicrafts, handlooms, jute and coir goods, bamboo goods, organic food, spices, home decor, and office furniture.
The Saras Collection contains carefully made products from leading self-help organizations, and it also includes Aabhar Collection, which contains more than 120 gift articles with One District One Product and Geographical Indication, ranging from Rs 500 to Rs 25,000, meant for government functions.
GeM is also engaging heavily with SC/ST entrepreneurs and a target of 25% procurement from MSMEs with a sub-target of 4% from SC/ST entrepreneurs and 3% from women entrepreneurs. As on August 2024, 59,390 SC/ST MSMEs have joined GeM and achieved an order value contribution of Rs 2,310 crore just in the current fiscal year.
Technology Upgrades: Cloud Migration and AI Integration
But beneath these impressive numbers, there's an enormous technological shift. GeM achieved one of the biggest cloud migrations as a government entity in India in FY 2024-25. That's not just about migrating servers; it's about creating a scalable solution that can sustain the firepower of an exponentially growing platform and still be reliable and secure.
It ensures that as the number of transactions doubles and triples, the platform continues to be efficient and stable. It would result in fewer system failures and more system uptime for suppliers.
GeMAI, GeM’s generative AI-powered chatbot, with its entry into GeM, thus marks yet another major milestone. GeMAI will be exclusively trained on GeM’s domain with data based on complaints, common queries, and common user complaints. Be it a buyer who needs help with formulating a bid or a seller who might be confused about any payment procedures. GeMAI will be able to assist.
The site has also improved its search functions with AI search tools that allow buyers and sellers to search for what they want. To suppliers, it means that they will be able to search for products effectively, and if your supplies match what a customer wants, an AI algorithm will make sure they locate you.
The Push Button Procurement facility has also been improved. Buyers will no longer have to make a certification about rates being reasonable for purchases up to Rs 5 lakh in a category with at least ten sources listed. It will enable quicker purchases for small values.
Make in India: 81% Adoption on GeM
The Make in India mandate has been adopted very effectively on GeM. Looking back at 2020-21, around 39% of the bids issued by central government departments included Make in India preferences. As of September 2024, it has almost been doubled at 81%, not because they are strictly enforced but because GeM enables easy identification and favors locally made goods.
This is an enormous advantage for Indian manufacturers and suppliers. The filters on the platform will make it easy for a buyer to identify products that are PMA compliant and made by SSI. The fact that local products get automatic consideration while foreign products don’t makes your products visible.
The service is working towards realizing its vision of reaching the last-mile seller. GeM SAHAYAK aims at developing a network of 6,000-7,000 accredited trainers who will assist sellers on how to use the portal and tap business opportunities. The Sahayaks would assist buyers as well in making bids and will offer value-added services.
Cumulative Public Savings: Rs 1.15 Lakh Crore
One of the most attractive value-for-money factors offered by GeM has been its capability to reduce costs associated with procurement. It has enabled collective savings exceeding Rs 1.15 lakh crore since its launch.
You might be thinking that if it is costing less for the government, then its suppliers are making fewer dollars. Not quite. It goes more like this: getting rid of go-betweens, getting rid of corruption, and getting rid of inflated costs that existed within these dark procurement departments. Competitive suppliers with well-running businesses make a very good profit. But times have changed, and they no longer have an advantage with information asymmetry.
Those suppliers who are honest with great products at affordable prices will have no problems with transparency. You will be competing based on merit, and that’s based on product quality, your ability to deliver, and your competent pricing as opposed to connections and manipulated bids.
What These Milestones Mean for Your Business Strategy
Viewing all these developments at once, there are some implications that emerge for suppliers on GeM.
First, it’s no more an R&D platform or an additional procurement alternative. It’s increasingly being adopted as a major procurement platform for government bodies in India. You’re missing out on the swiftly expanding procurement market within government services should you not be on GeM or have not optimized your outreach on GeM.
Secondly, with fewer charges for transactions, your profit margins get better with every single order. This isn’t a marginal advantage because it will amount to something considerable every year and will be enough to invest in scaling or differentiate your services with better pricing.
Third, as either an MSME, start-up, or woman-owned business, never before have you had it so good. From waived EMD costs, special marketplaces, and a drive from the government itself to buy from preferred sellers, you have an advantage that existed nowhere near as much as it does today.
Fourth, service sector businesses should seriously consider GeM if they haven’t done so already. Not only does it offer 330+ service categories and Rs. 80,500+ crore in quarterly purchases, but also the service sector is thriving. Whether it’s manpower services, facility management services, IT services, or any special type of consulting services. There will be ample demand for your services.
Fifth, advancements in technologies imply that the platform becomes easier and more reliable. The times when there were technical snags and complexities are soon going to be relegated to the past. AI-based support services and cloud hosting make doing business on GeM a smooth ride.
Looking Ahead: Positioning for Continued Growth
The GeM story ministers show no signs of slowing down. With GeM poised to be the world’s biggest government procurement portal, with all 36 states/UTs on board, and 8 states making GeM usage obligatory in all departments, there’s no end yet to the growth story.
The suppliers are no longer given an option on GeM. It’s about how you want to achieve your maximum success at GeM. You have to make sure your profile gets updated and maintained. You have to maintain your good rating at GeM. You have to watch out for new bids on GeM and act accordingly. Set your prices and perform.
The government policy environment has never been so supportive, and it keeps on improving with time. Technology is also improving, with an ever-expanding market. Vendors who get set up on GeM and develop efficient fulfillment capabilities will put themselves on an assured track for success within India.
The numbers are very telling from 2024-25—GeM has clearly emerged as a mature, efficient, and massive market. GeM transcended Rs 5 lakh crore in GMV, reduced transaction costs by as much as 96%, added hundreds of thousands of new suppliers, facilitated more than a million manpower recruitments, and conserved more than Rs 1.15 lakh crore for the government.
And for suppliers, every single one of these steps represents an opportunity. The procurement market for government business in India is very large and rising. And it's more and more accessible via GeM. Do you make things or services? Do you have a business, or are you still a start-up? GeM provides an equal opportunity platform with clear rules and ever-expanding demand. And your question should be, and your challenge should be, are you equipped and ready to capitalize on it? Because there's never a better time than today.
