Delhi is witnessing significant changes towards making the government procurement process more transparent, simple and digital. With the effective use of Government e-Marketplace (GeM), it is now easier than ever for small businesses, startups and entrepreneurs to connect with the government procurement system. Earlier, the processes related to government procurement were considered very complex and time consuming for small businessmen. It was a big challenge for them to get information about the tender, understand the different conditions of different departments and complete the necessary formalities. Due to this, many small businesses were not able to participate in the government procurement system.
Under the leadership of Chief Minister Rekha Gupta, the Delhi government is continuously taking steps to strengthen Micro, Small and Medium Enterprises (MSME) and connect them with the government procurement process. The government's focus is on providing new markets for MSMEs, increasing their participation in government procurement and making the entire process more transparent, simple and level-playing field. In this direction, effective use of Government e-Marketplace (GeM) is being promoted. Through GeM platform, small businessmen, startups and entrepreneurs of Delhi are getting the opportunity to connect directly with government departments and institutions. This is providing them a large, transparent and digital market, where they can easily list their products and services.
Delhi gets national honor due to increasing use of Gem, becomes example in government procurement
The efforts being made towards making the government procurement process digital and transparent in Delhi have been recognized at the national level. Delhi has been honored in the 'Sustained Services Procurement Adoption' category due to its increasing usage of Government e-Marketplace (GeM) and continuously increasing participation in procurement of services. The award was given in recognition of the continuous efforts made by government departments to promote the increasing share of procurement of services through the GeM platform and its effective usage. This makes it clear that Delhi has made significant progress in adopting digital means and increasing transparency in the government procurement process.
Record increase in government purchases from GeM
A steady pace is being recorded in the procurement process through the Government e-Marketplace (GeM) in Delhi. According to GeM data, government procurement has been recorded at Rs 1,595 crore in the financial year 2026-27 till July, an increase of 156 per cent compared to Rs 624 crore in the same period last year. This growth reflects the growing opportunities for Delhi's small businesses, startups and MSME sector. According to the data, a total of Rs 4,311 crore government procurement was done through GeM in Delhi in the financial year 2025-26, which was 41 percent more than in the financial year 2024-25. The share of purchases from Micro and Small Enterprises (MSEs) in this total procurement was approximately Rs 2,177 crore, which shows the increasing participation of the MSME sector.
There has been a significant increase in government procurement from MSE units in the last few years. While approximately Rs 965 crore was purchased from MSEs in the financial year 2021-22, this figure increased to Rs 2,177 crore in the financial year 2025-26. It is clear from this that the role of small businesses in the government procurement system is continuously getting stronger. Interestingly, about 95 percent of the orders received by Delhi vendors in FY 2025-26 came from the central government and government buyers from other states. This is giving the MSMEs of Delhi an opportunity to expand their products and services across the country instead of being limited to only the local market.
Increased participation of women entrepreneurs and startups
With the increasing use of Government e-Marketplace (GeM), now not only big businesses but also women entrepreneurs, Scheduled Caste (SC), Scheduled Tribe (ST) entrepreneurs and startups are taking advantage of the government procurement system. According to data for FY 2025-26, purchases worth Rs 315 crore from women entrepreneurs, Rs 41 crore from SC/ST entrepreneurs and Rs 405 crore from startups were recorded through the GeM platform. This shows that participation of diverse sections in the government procurement system is continuously increasing. GeM platform has made it easier for these sections to access the government market. The digital process has simplified features like registration, product listing and receiving orders, making it easier than ever for new entrepreneurs to participate in government procurement.
Increased transparency through digital procurement system
Government e-Marketplace (GeM) has given new strength to transparency, competition and efficiency by making the government procurement process completely digital. Conducting the entire procurement process through online platforms is providing greater convenience to both government departments and vendors, while making the procurement process more accountable and systematic than before. A variety of procurement facilities are available to government buyers on the GeM platform. These include Direct Purchase, L-1 Procurement, Online Bidding, Reverse Auction, Forward Auction and other modern procurement options. This allows departments to choose the most suitable and competitive option as per their needs.
Due to the digital system, the entire process from order issuance to billing and payment has become online. Features like online order management, vendor evaluation, e-billing, digital payments and MIS reporting are available on the platform, making it easy to monitor and analyze the procurement process. An important feature of Gem is its Artificial Intelligence (AI) and Machine Learning (ML) based anomaly detection system. This system helps to identify potential irregularities, unusual behavior or suspicious transactions in the procurement process. This not only increases transparency but also ensures accountability.
Gem's reach increasing through training and handholding
The government's efforts are not limited to providing digital platforms only, but training and continuous support is also being provided to government departments, officials and businesses for its effective use. More than 65 training programs related to GeM were organized during the financial year 2025-26, in which more than 3,600 people participated. The objective of these programs was to provide government officials and vendors with a better understanding of the processes, features and procurement mechanisms of the GeM platform.
The training programs included district level sessions of the Education Department, special training for major government hospitals and events like Gem Awareness Week organized at Delhi Secretariat. Through these initiatives, efforts were made to skill the employees and officers of various departments in the use of the digital procurement system. According to the government, the GeM team is also providing continuous handholding and technical support to the departments. This is helping departments address challenges in procurement processes and make more effective use of the platform.
Government procurement system will be strengthened by monitoring and review
Delhi Government is continuously taking steps towards making the procurement system more effective, transparent and accountable through Government e-Marketplace (GeM). For this purpose, a monthly review system has been developed between the Finance Department of Delhi Government and GeM, under which the trends in government procurement, tenders issued outside GeM and future procurement requirements are regularly reviewed. The objective of this review system is to increase transparency in the government procurement process and ensure that more and more procurement is done through the GeM platform. Through this, procurement related challenges are being identified and timely solutions are being ensured. According to the government, in the coming times, special focus will be given to maximum utilization of GeM, monitoring of price and quality, prompt resolution of complaints, reducing delays in payments and enhancing the capacity of MSMEs. For this, the use of modern facilities like savings dashboard, irregularity detection system and global tenders is also being promoted.
Chief Minister Rekha Gupta said that MSMEs are not just a medium for business, but are a strong foundation of employment generation, innovation and local economy. He said that making government procurement digital and transparent has given small businessmen the opportunity to reach a large institutional market, which has opened up new avenues for their growth. The Chief Minister said that the increasing purchases through GeM, increasing participation of MSMEs, opportunities available for women entrepreneurs and startups and Delhi businessmen getting orders from across the country are proof of this positive change. He said that this system is providing an opportunity to small enterprises to make their mark at the national level.
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