GeM Incorporation Day

GeM Incorporation Day

GeM Incorporation Day

This article covers “Daily Current Affairs” and the topic details “GeM Incorporation Day”. The topic “GeM” has relevance in the Governance,Transparency and Accountability section for the UPSC CSE exam.

Relevance of the topic “GeM Incorporation Day”

For Prelims:

When was GeM Incorporated?

What is GeM?

For Mains:

GS 2:Governance,Transparency and Accountability

What is the significance of GeM?

Way forward?

Why in the news?

A function was held yesterday in New Delhi to commemorate the incorporation of Government e- Marketplace (GeM) as a 100 percent not-for-profit Company on 17th May, 2017.

What is GeM?

GeM stands for Government e-Marketplace. It is an online platform introduced by the Government of India to facilitate procurement of goods and services by various government departments, organizations, and public sector undertakings (PSUs).

Significance of GeM?

Mandate: GeM aims to bring transparency, efficiency, and cost-effectiveness to the government procurement process. It eliminates the need for physical paperwork, manual tenders, and middlemen, thus reducing delays and corruption.

Features: GeM provides a single platform for buyers and sellers to interact and conduct business. It offers a wide range of products and services across multiple categories, including IT, office supplies, vehicles, furniture, consulting, manpower, and more.

Direct Purchase and Bidding: GeM offers two modes of procurement. In the Direct Purchase mode, government buyers can directly purchase goods and services from registered sellers at predefined rates. In the Bidding mode, competitive bidding is conducted for high-value procurements to ensure fair and transparent practices.

Benefits: GeM provides several advantages, including increased transparency, reduced transaction costs, improved efficiency, and access to a larger pool of suppliers. It also promotes small and medium enterprises (SMEs) and startups by providing them equal opportunities to participate in government procurement.

Integration with other systems: GeM integrates with various existing government systems such as Aadhaar, Digital Signature Certificate (DSC), Public Financial Management System (PFMS), and eSign. This integration ensures data integrity, authentication, and secure transactions.

Monitoring and Ratings: GeM maintains a rating system to assess the performance of sellers and buyers. It also enables monitoring and tracking of orders and provides analytics to government agencies for effective decision-making.

Way forward:

To improve GeM, consider implementing the following suggestions:

1.Enhance user interface for better navigation and ease of use.

2.Expand the range of products and services to cater to diverse government requirements.

3.Provide multilingual support to accommodate users from different regions.

4.Offer training and support programs to educate users on GeM functionalities.

5.Strengthen cybersecurity measures to ensure data protection and prevent fraudulent activities.

6.Strengthen cybersecurity measures to ensure data protection and prevent fraudulent activities.

7.Collaborate with state governments to encourage their active participation in GeM for wider reach and increased procurement opportunities.


Q.1 GeM (Government e-Marketplace) is an online platform launched by the Government of India to facilitate procurement by government agencies. 

1.GeM aims to promote transparency, efficiency, and cost-effectiveness in public procurement.

2.GeM allows only government entities to buy goods and services through the platform.

3.GeM provides a single-window system for registration, bidding, and payment processes.

4.GeM is exclusively designed for the procurement of goods and does not cover services.

Which of the following statements regarding GeM is/are correct?

(a) 1 and 3 only

(b) 2 and 4 only

(c)1,2 and 3 only

(d)1, 2,3 and 4



Q.2 Which initiative was launched by the Government of India to promote transparency and efficiency in public procurement through an online marketplace?

(a) Make in India

(b) Digital India

(c) GeM 

(d) Swachh Bharat Abhiyan


Q.3 Discuss the significance of GeM (Government e-Marketplace) in promoting transparency, efficiency, and cost-effectiveness in public procurement in India. Analyze its impact on reducing corruption, and fostering economic growth. Also, evaluate the challenges faced by GeM and suggest measures to overcome them for its effective implementation.                                                             (15 marks)



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