<h2>Overview</h2>
<p>The <span class="key-term" data-definition="Government e Marketplace — an online platform launched by the Ministry of Commerce & Industry for transparent, efficient public procurement across central and state governments (GS3: Economy)">GeM</span> has recorded a cumulative <span class="key-term" data-definition="Gross Merchandise Value — total value of all orders processed on a marketplace, indicating the scale of transactions (GS3: Economy)">GMV</span> of <strong>₹18.4 lakh crore</strong>, surpassing the <strong>₹5 lakh crore</strong> mark in FY 2025‑26. The platform is being positioned as a cornerstone of India’s digital public‑procurement ecosystem, aiming to make government spending more transparent, inclusive and technology‑driven.</p>
<h3>Key Developments (FY 2025‑26)</h3>
<ul>
<li>68% of total orders were placed by <span class="key-term" data-definition="Micro and Small Enterprises — businesses with investment up to ₹10 crore and turnover up to ₹50 crore, crucial for inclusive growth and employment (GS3: Economy)">MSEs</span>, contributing <strong>47.1% of GMV</strong>.</li>
<li>More than <strong>11 lakh MSEs</strong> registered, receiving <strong>51 lakh orders worth ₹2.36 lakh crore</strong> – a >20% rise YoY.</li>
<li>Women‑led MSEs (over 2.1 lakh) secured orders exceeding <strong>₹28,000 crore</strong>, registering ~28% growth.</li>
<li>SC/ST‑owned MSEs obtained orders worth > <strong>₹6,000 crore</strong>, also a ~28% increase.</li>
<li>Start‑ups earned orders of > <strong>₹19,000 crore</strong>, marking >36% growth.</li>
<li>State and Union Territory procurement grew by <strong>38.3%</strong>, reflecting deeper regional penetration.</li>
</ul>
<h3>Technology‑Driven Enhancements</h3>
<p>GeM leverages <span class="key-term" data-definition="Artificial Intelligence — computer systems that perform tasks requiring human intelligence, used in GeM for fraud detection and analytics (GS3: Economy)">AI</span> and <span class="key-term" data-definition="Machine Learning — a subset of AI where algorithms improve from data, applied in GeM for catalogue validation and anomaly detection (GS3: Economy)">ML</span> to improve transparency and efficiency. Notable interventions include:</p>
<ul>
<li>ML‑based catalogue validation and pre‑sanity checks to curb data errors.</li>
<li>Real‑time analytics for transaction monitoring, pricing anomalies, and collusive bidding detection.</li>
<li>System‑generated <span class="key-term" data-definition="Bid Health Scores — a data‑driven metric that assesses the reliability and compliance of bidders, enhancing decision‑making in public procurement (GS3: Economy)">Bid Health Scores</span> that aid buyers in selecting trustworthy sellers.</li>
</ul>
<h3>Important Facts at a Glance</h3>
<ul>
<li><strong>Cumulative GMV:</strong> ₹18.4 lakh crore.</li>
<li><strong>FY 2025‑26 GMV:</strong> >₹5 lakh crore.</li>
<li><strong>MSE participation:</strong> 68% of orders, 47.1% of GMV.</li>
<li><strong>Women‑led MSE orders:</strong> ₹28,000 crore (+28%).</li>
<li><strong>SC/ST MSE orders:</strong> >₹6,000 crore (+28%).</li>
<li><strong>Start‑up orders:</strong> >₹19,000 crore (+36%).</li>
<li><strong>State/UT procurement growth:</strong> 38.3% YoY.</li>
<li><strong>Key technology tools:</strong> AI, ML, real‑time analytics, Bid Health Scores.</li>
</ul>
<h3>UPSC Relevance</h3>
<p>Understanding GeM is vital for GS III (Economy & Development) as it illustrates how digital platforms can enhance public‑sector efficiency, promote inclusive growth, and curb corruption. The platform’s focus on <span class="key-term" data-definition="Micro and Small Enterprises — businesses with investment up to ₹10 crore and turnover up to ₹50 crore, crucial for inclusive growth and employment (GS3: Economy)">MSEs</span>, women entrepreneurs, and SC/ST enterprises aligns with the government’s “Make in India” and “Atmanirbhar Bharat” objectives. Moreover, the use of <span class="key-term" data-definition="Artificial Intelligence — computer systems that perform tasks requiring human intelligence, used in GeM for fraud detection and analytics (GS3: Economy)">AI</span> and <span class="key-term" data-definition="Machine Learning — a subset of AI where algorithms improve from data, applied in GeM for catalogue validation and anomaly detection (GS3: Economy)">ML</span> showcases the role of technology in governance, a recurring theme in ethics and public administration questions.</p>
<h3>Way Forward</h3>
<p>To sustain momentum, GeM could:</p>
<ul>
<li>Integrate more granular sustainability metrics to promote green procurement.</li>
<li>Expand capacity‑building programmes for MSEs, especially in Tier‑2/3 states, to bridge digital literacy gaps.</li>
<li>Enhance interoperability with state‑level e‑procurement portals for seamless data exchange.</li>
<li>Strengthen AI‑driven fraud‑prevention modules, ensuring privacy and data security.</li>
</ul>
<p>Continued adoption by <span class="key-term" data-definition="Central Public Sector Enterprises — government‑owned corporations that undertake commercial activities, participating in GeM procurement (GS3: Economy)">CPSEs</span> and state governments will further embed GeM as the backbone of India’s transparent public‑spending architecture.</p>