By Ahana Verma 
India’s government is one of the largest buyers in the world. It spends approximately 15–20% of GDP on public procurement. Consequently, at India’s current GDP, that represents roughly $400–500 billion in annual purchasing power.
Most entrepreneurs and small business owners have no idea how to access it. However, a platform called GeM Government e-Marketplace has been systematically changing that since 2016. Moreover, the latest data shows just how large the impact has become.
According to the Ministry of Commerce and Industry, procurement worth more than ₹8.69 lakh crore ($95.6 billion) has been sourced from micro and small enterprises through GeM since its launch. Furthermore, registered MSEs on the platform have grown from 2,396 in 2016 to more than 11.9 lakh today. Additionally, orders placed through the portal increased from 2,994 to over 2.17 crore.
What GeM Actually Is and Why It Matters
GeM is India’s national public procurement portal. Specifically, it allows any government ministry, department, public sector unit, autonomous institution, or local body to buy goods and services from registered vendors.
Furthermore, it was built to level the playing field. Before GeM, winning government contracts required relationships, paperwork, and patience that most MSEs and startups simply did not have. Large suppliers with dedicated tender teams dominated.
GeM changed this. It provides online onboarding, transparent bidding, digital contract management, and end-to-end procurement processes. Consequently, a small manufacturer in Jaipur or a tech startup in Bhubaneswar can now compete for government contracts on equal terms with established large suppliers.
The Startup Opportunity Within GeM
The startup-specific numbers are particularly striking. Startup participation on GeM grew from 88 entities in the early years to more than 40,000 today. Moreover, procurement from startups exceeded ₹61,400 crore ($6.62 billion) in total.
Furthermore, the platform uses AI, advanced analytics, and digital monitoring tools to enhance efficiency and transparency. Therefore, it is not just a procurement portal it is also a living dataset of government demand across every sector and geography in India.
Additionally, women-led businesses have benefited significantly. Registered women-owned MSEs grew from 268 to over 2.16 lakh. Procurement from women-led enterprises rose from ₹8 crore to over ₹93,327 crore. Consequently, GeM has created genuine economic inclusion at scale not through charity, but through market access.
How Founders Should Think About GeM Strategically
Most founders ignore government procurement. They view it as slow, bureaucratic, and unprofitable. This view is outdated.
Specifically, three categories of Indian startups should actively pursue GeM as a revenue channel.
First, software and SaaS companies. Government departments actively buy software through GeM. Moreover, the shift to digital governance means demand is growing rapidly. Consequently, a startup with a credible productivity tool, data analytics platform, or cybersecurity product can access government buyers who are actively looking and have allocated budgets.
Second, hardware and manufacturing startups. Government procurement of electronics, office equipment, and industrial supplies is enormous. Furthermore, the Atmanirbhar Bharat mandate actively preferences domestically manufactured products. Therefore, startups producing physical goods particularly those with a Made in India certification have a policy tailwind working in their favour.
Third, deeptech and AI startups. GeM increasingly lists AI-powered services. Furthermore, the IndiaAI Mission and Atmanirbhar Bharat programmes are creating specific procurement pathways for Indian AI companies to supply government agencies. Consequently, an AI startup with a credible government-ready product has a route to non-dilutive government revenue.
The Practical First Step
Getting listed on GeM requires registration through the portal with standard business documentation. Furthermore, the process is fully digital and typically completes within one to two weeks.
However, the real investment is in crafting product listings that match how government buyers search which differs significantly from how commercial buyers search. Additionally, understanding the bid evaluation criteria for specific procurement categories determines whether a listing generates orders or sits unnoticed.
The $95.6 billion that has already flowed to MSEs proves the platform works. Therefore, the question for every founder is not whether GeM is a viable channel. It is why they have not already listed.
Tags: GeM India, Government e-Marketplace, MSE Procurement, Startup Government Contracts, India Public Procurement, GeM $95 Billion, Startup India GeM, Women Entrepreneurs GeM, Atmanirbhar Bharat Procurement Author CTA: Follow Flairius News — sharp takes on AI, business, and India’s startup economy — flairiusnews.com
Raghav Sharma