GeM’s Growth Story: Powering Small Businesses and Turning Government Scrap into Economic Value

small business
Pic Credit: Pexel

India’s public procurement system is quietly undergoing a digital revolution. At the heart of this transformation is the Government e-Marketplace (GeM), a platform that has moved far beyond its original mandate of simplifying government purchases. Today, GeM is strengthening small businesses, promoting transparency, and unlocking economic value from government scrap, machinery, and unused assets—while supporting employment and sustainable growth.

A New Era of Inclusive Government Procurement

For decades, government procurement remained largely inaccessible to small enterprises due to complex procedures and limited visibility. GeM has changed this dynamic by creating a transparent, technology-driven marketplace where businesses of all sizes can compete on equal footing.

As of late 2025, more than 11.25 lakh micro and small enterprises are registered as sellers on GeM. Collectively, these businesses have secured government orders worth ₹7.44 lakh crore, accounting for nearly 45% of the platform’s total transaction value. This figure not only surpasses the mandated procurement target for small enterprises but also highlights how digital platforms can democratize access to large public markets.

For many MSMEs, GeM has become a dependable channel for growth—offering consistent demand, quicker market access, and reduced dependency on intermediaries.

Monetising Idle Assets Through Digital Auctions

One of GeM’s most impactful yet lesser-known contributions is its Forward Auction module, which enables government departments to monetise obsolete and surplus assets. Over the past four years, this module has facilitated the disposal of government assets worth more than ₹2,200 crore.

From scrap metal and e-waste to old vehicles, machinery, and even leasehold properties, the platform ensures that unused assets are repurposed efficiently. Between December 2021 and November 2025, over 13,000 auctions were conducted, drawing participation from 23,000 registered bidders and more than 17,000 auctioning entities.

This shift has not only generated revenue for the government but also injected fresh momentum into recycling, refurbishment, logistics, and resale industries.

Boosting Scrap, E-Waste, and Machinery Markets

GeM’s auction ecosystem has given a structured and transparent marketplace to sectors such as scrap processing, e-waste recycling, and used machinery trading. These industries play a critical role in the circular economy, yet often struggle with inconsistent supply and lack of formal access to large sellers.

Recent auctions have included the sale of condemned vehicles, obsolete equipment, industrial minerals, salvage material from infrastructure projects, and the leasing of tourism and commercial properties. Such transactions enable private players to invest, innovate, and create jobs while ensuring responsible resource utilisation.

By digitising asset disposal, GeM has reduced delays, improved price discovery, and encouraged environmentally responsible business practices.

Strengthening Women-Led Enterprises

GeM has also emerged as a powerful enabler of women entrepreneurship. More than two lakh women-owned micro and small enterprises are active on the platform, together securing cumulative orders worth over ₹78,000 crore.

The platform’s transparent processes and minimal entry barriers have helped women-led businesses expand beyond local markets, build credibility, and participate in national-level procurement—contributing to broader economic inclusion.

Driving Business Confidence and Employment

During the current financial year, GeM recorded transactions worth over ₹3 lakh crore within just eight months, reflecting strong confidence among buyers and sellers alike. For small businesses, this steady flow of orders translates into expanded operations, increased hiring, and greater investment in skills and technology.

Indirectly, GeM supports employment across manufacturing, logistics, recycling, IT services, and support functions—making it a vital link between public spending and private sector job creation.

A Platform Aligned with India’s Growth Vision

GeM exemplifies how digital public infrastructure can align governance with economic development. By combining transparency, efficiency, and inclusivity, the platform supports India’s vision of self-reliance, sustainability, and equitable growth.

As GeM continues to evolve, its impact is likely to extend further—turning procurement into a tool for enterprise development, asset monetisation into opportunity creation, and digital governance into real-world economic value.