Legal ADDA

## Understanding GeM and Tender Bidding

The Government e‑Marketplace (GeM) was launched on 9 August 2016 as an online portal to streamline public procurement. GeM enables government departments and public‑sector undertakings to buy goods and services electronically using tools such as e‑bidding, reverse auctions and demand aggregation. The portal has scaled rapidly – by 2019 more than 290 000 sellers offered over 1.4 million products to more than 39 000 buyer organisations – and it has delivered savings of up to 25 percent in government expenditure. These features make GeM an attractive entry point for micro, small and medium enterprises (MSMEs) that want to compete for government contracts.

### Benefits of GeM Tender Bidding for Small Businesses

1. **Transparency and fair competition** – GeM eliminates intermediaries and automates procurement, reducing the scope for bribery and unfair practices. All activities are recorded and auditable, giving small businesses confidence that they are competing on a level playing field.

2. **Cost‑efficiency and better prices** – Real‑time price comparisons and competitive bidding help buyers find the best deals. Sellers avoid commissions to middlemen, allowing them to offer competitive prices.

3. **Access to a huge customer base** – Registration on GeM gives MSMEs direct access to thousands of government buyers. This broadens their market and reduces marketing costs.

4. **Ease of use and time efficiency** – The portal is designed for easy navigation. E‑bidding and electronic processing speed up tender cycles and reduce paperwork.

5. **Timely digital payments** – Integration with digital payment systems ensures that vendors receive payments quickly and securely. This improves cash flow – a critical factor for small businesses.

#### Why MSMEs Should Register on GeM

* **Inclusive platform** – GeM encourages MSMEs and startups through special filters, enabling buyers to restrict bids to small enterprises. This boosts the share of MSME purchases in government procurement.
* **Reduced operational costs** – The online process cuts travel, paperwork and marketing expenses, allowing MSMEs to focus resources on quality and innovation.
* **Participation in government initiatives** – The portal supports Digital India and Make‑in‑India initiatives, promoting locally manufactured goods and women‑led enterprises.

##### How to Get Started

1. **Register** – Visit the official GeM portal, click Sign Up and select your user type (buyer or seller). Provide required details and documents; after verification, your account will be activated.
2. **List products and services** – Use accurate descriptions, quality images and correct HSN codes to make your listings more visible.
3. **Monitor tenders and bid** – Government buyers regularly post tenders on GeM; track opportunities in your category and submit competitive quotes.
4. **Leverage analytics** – The portal provides analytical tools to understand buyer preferences and bidding trends. Use these insights to refine your pricing and offerings.

### Conclusion

GeM tender bidding opens a new avenue for small businesses to expand their sales and participate in India’s public procurement market. By offering transparency, cost savings, quick payments and access to a large customer base, GeM helps MSMEs grow sustainably and contributes to the nation’s economic development.