GeM expands scope with foreign bids and work contracts

India’s Government e-Marketplace (GeM) plans to allow foreign suppliers for high-value contracts and introduce rate and work contracts to boost procurement. With a target of ₹7 lakh crore in transactions this fiscal, GeM is expanding its role in national projects—from vaccines to missile systems—while deepening its reach across states and rural bodies.

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India’s public procurement portal, Government e-Marketplace (GeM), plans to open bidding for foreign suppliers and introduce rate contract tenders, aiming to facilitate transactions worth ₹7 lakh crore in FY2025.

Currently, “according to the current rules foreign suppliers cannot participate in government contracts of below ₹200 crore. For contracts over that value foreign suppliers can be permitted,” said GeM CEO P K Singh. The recent FTAs with the UAE and the UK have opened up government procurement to these partners, prompting this move. The mechanism for foreign supplier participation—whether it requires empanelment—will be finalised later.

GeM is also exploring inclusion of work contracts, alongside rate contracts. Rate contracts, used for fixed-price supply over time, could cover items like medicines and medical supplies in public health systems. The consultation on work contracts—which include construction, repair, maintenance, or installation of movable or immovable property—has been ongoing. These contracts, including building of hospitals, schools, or highways, form around 90% of global public procurement.

In FY 2024-25, GeM recorded procurement worth ₹5.43 lakh crore, a 35% rise from the previous year, with services accounting for 61% of total procurement. While Singh didn’t specify the services-goods split for the current fiscal, he noted major procurements like ₹5,000 crore for Akash Missile System equipment and ₹5,085 crore in vaccines. GeM is also powering complex services such as drone-as-a-service for AIIMS, GIS, insurance for 1.3 crore lives, and wet leasing of chartered flights and CT scanners.

Since its inception in 2020-21, GeM has processed 2.8 crore orders worth ₹13.4 lakh crore. It currently handles over 20,000 daily orders with a GMV of ₹1,503 crore. The platform has onboarded all central departments, PSUs, state governments, and 1.6 lakh gram panchayats. “We will focus on states this year. We have to increase the footprint of states,” Singh said.