NEW DELHI: Global firms will soon be allowed to participate in government procurement through the Government e-Marketplace (GeM), marking a calibrated opening of India’s public procurement system to international competition.
The GeM is a portal for facilitating online procurement of common use foods & services required by various government departments, organisations and PSUs.
The move comes with safeguards to protect domestic industry and ensure that local suppliers are not adversely affected.
Officials said the global tender enquiry (GTE) feature has already been introduced on the portal. To facilitate foreign participation, GeM has enabled a multi-currency payment system, allowing buyers to receive bids in currencies of their choice. “All currencies are allowed. It is for the buyer to decide in which currency they want to receive offers,” Mihir Kumar, Chief Executive Officer, GeM told reporters in the national capital on Monday.
The development comes even as GeM continues to expand its role as a key digital platform for public procurement. The portal has recorded a cumulative transaction value of Rs 18.4 lakh crore, including over Rs 5 lakh crore in the last financial year alone, reflecting growing trust among government buyers and sellers.
“Crossing cumulative GMV of ₹18.4 lakh crore, reflects not just scale, but confidence—confidence of buyers, sellers, and institutions in a transparent and technology-driven procurement ecosystem,” said Kumar.
Demand for global tenders is largely being driven by central public sector enterprises, particularly in sectors such as petroleum and natural gas, where certain advanced technologies are not yet available domestically. Some scientific ministries and research institutions have also shown interest. However, officials underlined that global bidding will not be opened indiscriminately and existing procurement norms will continue to apply.
Buyers will be required to first explore domestic options before opting for international tenders. Procurement from foreign firms will be permitted only above specified value thresholds. For purchases below these limits, prior approval from competent authorities will be necessary. Proposals will be examined at senior levels before any global tender is issued, an official said.
Under existing policy, foreign suppliers will be classified as Class II vendors, while domestic firms will continue to enjoy Class I status. In cases where capable domestic suppliers are available, they will be given preference. Foreign bidders are likely to succeed only when suitable domestic options are not present.
Officials said the platform has also helped widen participation by small businesses. A significant share of orders has gone to micro and small enterprises, along with increasing participation from women-led enterprises, SC/ST entrepreneurs and startups. This, they noted, points to a broader shift towards more inclusive public spending.
The official said, “more than 11 lakh micro and small enterprises (MSEs) are currently registered on the GeM portal. In 2025–26, these enterprises collectively received over 51 lakh orders worth Rs 2.36 lakh crore, marking a growth of over 20% compared to the previous financial year.
“Women-led MSEs have also seen a steady rise in participation. Over 2.1 lakh such enterprises are registered on the platform, securing orders worth more than Rs 28,000 crore during 2025–26, reflecting an increase of around 28% year-on-year.
“Similarly, enterprises owned by SC/ST entrepreneurs have witnessed significant growth, with orders exceeding Rs 6,000 crore in 2025–26 — an increase of about 28% compared to the previous year.
“Startups, too, are emerging as key contributors on the platform, bagging orders worth over Rs19,000 crore in 2025–26, registering a robust growth of more than 36% year-on-year.”
Technology remains central to GeM’s functioning. The platform uses data analytics and automated systems to improve transparency, reduce errors and detect irregularities such as abnormal pricing or collusive bidding. These tools are aimed at making procurement more efficient and reliable.
After strong adoption by central ministries and public sector undertakings, State governments are also increasingly turning to GeM for procurement. Officials said this growing uptake reflects confidence in the platform’s ability to ensure transparency and accountability in public spending.
#GeM #msme #technology #publicsectorundertakings #transparency #foreign #domestic
For further queries contact indiahealthbuddy@gmail.com
