What Is GeM Portal? A Simple Explanation for Businesses
If are a business owner, MSME, startup, trader, manufacturer, or service provider, chances are you have heard about GeM Portal — often described as “the government’s Amazon for procurement.”
But what exactly is GeM, who is it meant for, and why was it created in the first place?
This blog explains GeM Portal in the simplest possible terms, especially for beginners.
What Is GeM Portal?
Government eMarketplace (GeM) is an online platform created by the Government of India for
buying and selling goods and services by government departments, PSUs, autonomous bodies, and
local authorities.
In simple words:
GeM is the official portal where the government buys products and services directly from
businesses.
Instead of calling vendors manually, floating paper tenders, or relying on offline processes,
government buyers now purchase through GeM in a transparent, digital, and standardized way.
Why Did the Government Create GeM portal?
Before GeM existed, government procurement had many problems:
-
- Long and complex tender processes
- Limited participation from small businesses
- Lack of transparency in pricing
- Manual paperwork and delays
- Heavy dependence on intermediaries
To solve these issues, the government launched GeM with three clear objectives:
1. Transparency in Government Buying
Every step — from listing to bidding to payment — happens digitally, reducing discretion and
favoritism.
2. Ease of Doing Business
Small businesses and MSMEs can directly sell to government buyers without middlemen.
3. Faster & Cost-Effective Procurement
Government departments can compare prices instantly and buy faster, often at better rates.
Today, GeM has become the default procurement route for many government purchases under GFR-2017.