Micro, Small, and Medium Enterprises (MSMEs) form the backbone of India’s economy. They contribute significantly to employment and industrial output. With the Government e-Marketplace (GeM), MSMEs now have a lot of opportunities to grow their business. Now, they can access public procurement on a transparent and user-friendly platform.
GeM is a unified online platform created to facilitate government purchases, simplifying tendering processes for both buyers and sellers. For MSMEs, the GeM portal provides a gateway to bid on a vast array of tenders while promoting fair competition.
What Is GeM?
The GeM portal (Government e-Marketplace) is an online platform created by the Government of India to make public procurement easier. It enables government departments, PSUs, and other agencies to procure goods and services transparently and efficiently.
GeM creates fair competition by encouraging participation from MSMEs across various sectors. With features like real-time tracking, digital payments, and analytics, GeM ensures that businesses, especially MSMEs, have access to timely opportunities.
Key Features of GeM for MSMEs
The GeM portal empowers MSMEs by giving them easy access to a wide range of tenders across categories, including goods and services. Using GeM opens up several opportunities for MSMEs. Some key features include:
- Direct Market Access
GeM connects MSMEs with government buyers, eliminating middlemen. This allows small businesses to directly show their products or services to over 50,000 buyer organisations. - Ease of Registration and Participation
MSMEs can complete GeM registration quickly and gain access to tender opportunities without complex paperwork. They can register on the GeM portal using their Udyam Registration, a simplified process that directly links enterprises to the government’s procurement system. Over 8.5 lakh MSMEs are already onboarded, collectively securing orders worth Rs 1.87 lakh crore from more than 68 lakh transactions. - Reserved Opportunities through Mandatory Procurement Policies
A significant portion of tenders on GeM are reserved for MSMEs under the Public Procurement Policy. The Public Procurement Policy mandates that 25% of all government purchases are reserved for MSMEs, including 4% for SC/ST-owned businesses and 3% for women entrepreneurs. This ensures a steady demand for goods and services from MSMEs. - Support for Underserved Groups
Special initiatives like SWAYATT promote inclusivity by encouraging participation from underserved seller categories, including women, tribal entrepreneurs, and startups. - Integration with Other Schemes
Platforms like TReDS (Trade Receivables Discounting System) are integrated with GeM to address delayed payments. This ensures that small businesses are paid on time and have a steady cash flow. MSMEs can also avail of support through IP facilitation centres and other government-backed schemes.
Types of Opportunities on GeM for MSMEs
- Product Tenders: MSMEs specialising in manufacturing can bid for tenders in categories like furniture, IT equipment, electrical appliances, and more.
- Service Tenders: Businesses providing services such as IT solutions, logistics, maintenance, or staffing can find relevant tenders tailored to their expertise.
- Custom Bid Opportunities: MSMEs can leverage custom bid tenders, which allow them to propose customised solutions that fit specific government needs.
Success Stories of MSMEs on GeM
Many MSMEs have expanded their footprint by leveraging the platform. Businesses in sectors like handicrafts, organic products, and logistics have seen exponential growth through government procurement. For example, a Delhi-based MSME specialising in IT hardware won multiple GeM contracts for laptops and printers, scaling its annual revenue by 40%.
Data by the Press Information Bureau confirms these trends. It shows that over 1.45 lakh women-led MSMEs on GeM have executed transactions worth Rs 15,922 crore. And, approximately 43,000 SC/ST-owned MSMEs have fulfilled orders valued at Rs 2,592 crore.
How to Get Started on GeM
- GeM Registration
Begin by registering on the GeM portal with your enterprise’s Udyam Registration. This quick process connects your business to the government’s procurement system.
- GeM Login and Setup
Once registered, log in to access GeM’s dashboard, where you can list your products, explore tenders, and receive updates.
- Explore Relevant Tenders
Use filters to identify relevant opportunities and track transactions in real-time for seamless operations. Understand the tender requirements and prepare competitive bids to increase your chances of success.
How GeM Benefits MSMEs
- Wider Market Access
GeM provides direct access to a vast marketplace of government buyers across Central Ministries, PSUs, and State Departments. This increases the market reach for MSMEs.
- Reduced Operational Costs
By centralizing procurement online, GeM eliminates intermediaries. It reduces procurement costs for both buyers and sellers.
- Transparency and Fair Competition
The digital nature of GeM ensures that all processes are fair and transparent. This levels the playing field for smaller enterprises. The portal’s user-friendly interface and advanced filtering features also add to this.
- Support for Growth
GeM actively promotes MSMEs by reserving certain categories exclusively for them.
Make the Most of GeM Tenders with BidAssist
The GeM portal has transformed government procurement into an inclusive process, enabling MSMEs to thrive. For MSMEs, GeM is not just a platform but a gateway to growth, inclusivity, and financial stability. With policies encouraging fair competition and initiatives supporting marginalised groups, the portal is set to empower more small businesses in the coming years.
MSMEs have access to boundless opportunities to scale their businesses with its user-friendly interface, simplified registration, and other features like real-time updates. By adopting a strategic approach to bidding, your MSME can become a big player in India’s government procurement landscape.
To explore opportunities, start your GeM registration today and unlock the potential of this transformative platform.
If you need further help in simplifying the tendering process on the GeM portal, BidAssist is your go-to platform. With BidAssist, you can get a comprehensive list of tenders directly from the GeM portal, tailored to your business needs. You can also stay updated with notifications on the latest GeM tenders so that you never miss an opportunity.
BidAssist guides you at every step. You can get support in understanding tender requirements, preparing documents, and getting detailed analytics on tender performance to improve your bidding strategy.