Uttar Pradesh has become the first Indian state to fully adopt the Government e-Marketplace (GeM), streamlining procurement, enhancing transparency, and saving over ₹2,000 crore annually. By scrapping 33 outdated rules, UP ensures equitable opportunities, with significant contributions to MSMEs and startups, setting a model for Digital India.
UP Pioneers Transparent Procurement with GeM
In a landmark move, Uttar Pradesh has emerged as the trailblazer in India’s public procurement landscape by fully integrating its procurement processes with the Government e-Marketplace (GeM). On November 26, 2024, the state government issued a comprehensive order, annulling over 33 obsolete procurement directives to align with GeM’s regulations, marking a significant shift from traditional tendering systems. This bold step has positioned UP as the first state to mandate all government purchases through GeM, ensuring transparency, efficiency, and equal opportunities for suppliers.
The GeM platform, launched in 2016 by the Ministry of Commerce and Industry, is a digital marketplace designed to streamline procurement for central and state government entities, public sector undertakings, and local bodies. UP’s adoption has yielded remarkable results, with the state recording purchases worth ₹65,227 crore between FY 2020–21 and 2024–25. In FY 2024–25 alone, UP contributed significantly to GeM’s nationwide procurement of ₹5.43 lakh crore through over 72 lakh orders, as highlighted by Union Commerce and Industry Minister Piyush Goyal in a letter to Chief Minister Yogi Adityanath.
The state’s commitment to GeM has eliminated intermediaries, reduced corruption, and fostered a competitive environment. By standardizing procurement processes, UP has ensured that even small and medium enterprises (SMEs) and startups can compete on a level playing field. Notably, 85% of GeM orders in UP are awarded to MSMEs, empowering grassroots entrepreneurship. The Uttar Pradesh Building and Other Construction Workers Welfare Board recently utilized GeM to procure quality infrastructure materials, including furniture and IT equipment, for 18 Atal Residential Schools, benefiting students, particularly those orphaned during the COVID-19 pandemic.
The shift to GeM has also brought substantial cost savings. According to official estimates, UP is expected to save over ₹2,000 crore annually by leveraging GeM’s e-bidding, reverse auctions, and demand aggregation tools, which drive down costs by fostering competition. An independent World Bank assessment confirms that GeM saves buyers an average of 9.75% on median prices, contributing to nationwide savings of approximately ₹1.15 lakh crore. UP’s top departments, including Urban Development (₹11,588 crore), Health and Family Welfare (₹9,257 crore), and IT and Electronics (₹8,241 crore), have been instrumental in driving these savings.
Chief Minister Yogi Adityanath’s leadership has been pivotal in this transformation. His proactive guidance has ensured seamless integration of GeM across state departments, aligning with the Digital India vision. The state’s unified procurement framework, now compliant with the General Financial Rules (GFR) 2017 and GeM’s General Terms and Conditions (GTC), has simplified processes and enhanced accountability. This model has earned praise from the central government, with Minister Goyal calling UP a benchmark for other states.
GeM’s technological advancements, such as the upcoming GeMAI chatbot and integrations with Aadhaar, PAN, and banking systems for real-time verification, have further bolstered UP’s procurement efficiency. The platform’s inclusivity initiatives, like Startup Runway and Womaniya, have enabled over 30,000 startups and 181,000 women entrepreneurs to secure orders worth ₹38,500 crore and ₹50,000 crore, respectively, nationwide. In UP, these initiatives have opened doors for marginalized communities, ensuring equitable access to government contracts.
The state’s success is not just financial but also systemic. By replacing the outdated Uttar Pradesh Procurement Manual of 2016, GeM has minimized errors, reduced discretion, and curbed potential misuse. Any deviation from GeM protocols can now lead to disqualification from conducting business with the UP government, ensuring strict compliance. This digital overhaul has strengthened public administration, fostering trust and accountability among citizens.
As GeM aims to achieve ₹7 lakh crore in transactions in the current fiscal year, UP’s leadership in transparent procurement sets a powerful precedent. The state’s integrated approach, combining technology, policy reform, and inclusive execution, is a testament to how digital platforms can transform governance. With plans to integrate GeM with state-level financial management systems, UP is poised to further amplify its impact, driving India closer to the vision of Viksit Bharat 2047.
Disclaimer: This article is based on information sourced from recent news reports, official statements from the Government e-Marketplace, and updates from the Ministry of Commerce and Industry. Data points are derived from credible sources like Times of India, Hindustan Times, and GeM’s official portal. Readers are advised to verify details through official government channels for the latest updates.