Uttar Pradesh leads India’s procurement revolution by fully adopting the GeM portal, achieving transparency and efficiency with over ₹9,442 crore in purchases. The state’s integration eliminates traditional tendering, saving ₹2,000 crore annually, empowering MSMEs, and setting a national benchmark for digital governance.
UP Sets National Benchmark in GeM-Driven Procurement
In a transformative move, Uttar Pradesh has become the first Indian state to fully integrate its procurement processes with the Government e-Marketplace (GeM), abolishing traditional tendering systems to ensure transparency and efficiency. A government order issued on November 26, 2024, annulled 33 outdated procurement directives, mandating strict adherence to GeM protocols. This shift has positioned UP as a role model for digital governance, with the state achieving a historic ₹9,442 crore in purchases through the portal over the past four years, as highlighted by state officials.
The GeM portal, launched in 2016 by Prime Minister Narendra Modi, is a digital platform designed to streamline public procurement for central and state government entities. UP’s adoption has eliminated intermediaries, reduced corruption, and ensured equitable opportunities for suppliers. According to Krishna Murari, deputy CEO of GeM in UP, the state’s procurement manual, established before GeM’s inception, had become obsolete, leading to inefficiencies and potential misuse. The transition to GeM has standardized processes, minimizing errors and ensuring compliance.
Recent data underscores UP’s leadership. In the financial year 2024–25, GeM facilitated transactions worth ₹5.4 lakh crore nationally, with UP contributing significantly. The state’s procurement through GeM has led to estimated annual savings of over ₹2,000 crore, driven by competitive pricing and transparent bidding. For instance, the Uttar Pradesh Building and Other Construction Workers Welfare Board utilized GeM to procure quality infrastructure materials for 18 Atal Residential Schools, ensuring swift delivery at competitive rates.
UP’s success extends beyond savings. The state has empowered micro, small, and medium enterprises (MSMEs), with 85% of GeM orders awarded to such businesses. This aligns with GeM’s inclusivity pillar, enabling small vendors to compete with larger players. The platform’s integration with state financial systems, including UP’s, ensures end-to-end transparency from budget allocation to payment, setting a precedent for other states like Gujarat and Maharashtra.
Nationally, GeM has revolutionized public procurement, handling ₹13.4 lakh crore in transactions since its inception. With over 1.6 lakh government buyers and 23 lakh sellers, the platform is poised to become the world’s largest public procurement portal, surpassing South Korea’s KONEPS. UP’s pioneering role, as emphasized by Union Commerce Minister Piyush Goyal, reflects the platform’s potential to drive India’s vision of Viksit Bharat 2047.
The introduction of GeMAI, a generative AI-powered chatbot, further enhances GeM’s capabilities, offering real-time solutions for buyers and sellers. UP’s mandate for GeM use, coupled with initiatives like Startup Runway and Womaniya, has boosted participation from startups and women-led enterprises, with 30,000 startups securing orders worth ₹38,500 crore and women entrepreneurs gaining ₹50,000 crore in business.
Disclaimer: This article is based on recent news reports, official statements from the Government e-Marketplace, and data from credible sources like the Times of India and PIB. Information is accurate as of July 2025, but readers are advised to verify real-time data for the latest updates.