How GeM Portal Helps MSMEs Get Government Contracts Easily

Running a business successfully requires good customers and steady orders. For small businesses, one of the best types of customers is the government. Why? Because government buyers place large orders, pay on time, and are reliable. But earlier, it was not easy for Micro, Small, and Medium Enterprises (MSMEs) to sell their products or services to the government. The process was slow, confusing, and often limited to large businesses.

To solve this problem, the Indian government created a platform called the Government e-Marketplace (GeM). This online platform makes it easier for MSMEs to sell their goods and services directly to government departments, ministries, and public sector units.

In this article, we’ll explain in simple terms what the GeM Portal is, how it works, and how it helps MSMEs win government contracts easily.

What is the GeM Portal?

GeM stands for Government e-Marketplace. It is an online portal started by the Ministry of Commerce and Industry in 2016. The purpose of the GeM portal is to help government buyers (like ministries, departments, and public sector undertakings) buy goods and services directly from sellers through a transparent and easy process.

For MSMEs, GeM is a golden opportunity to become suppliers to the government without needing any middlemen or complex paperwork.

Objectives of GeM

1. Promote Transparency – All purchases and orders are made online, making the process open and fair.
   
   

2. Reduce Time and Cost – It reduces the time needed to get orders and avoids manual processes.
   
   

3. Encourage MSMEs and Startups – The platform is designed to support small businesses and give them access to big buyers.
   
   

4. Create a Level Playing Field – GeM removes favoritism and allows businesses of all sizes to compete fairly.

Why Should MSMEs Join GeM?

Here are several reasons why registering on GeM is a smart move for MSMEs:

1. Direct Access to Government Buyers: Once registered, you can sell your products and services directly to more than 70,000+ government departments and CPSEs (Central Public Sector Enterprises).

2. No Middlemen: You deal directly with government buyers. No need to pay commissions or go through agents.

3. Equal Opportunity: Small businesses can compete with large firms based on price, quality, and delivery.

4. Boost in Sales: With large and regular orders from government agencies, your revenue and stability increase.

5. Timely Payments: As per government rules, MSMEs must be paid within 10 to 45 days. This ensures better cash flow.

6. Supportive Policies: The GeM portal has special features and benefits just for MSMEs and startups, like price preferences and reserved categories.

Who Can Register on GeM?

Any business, trader, manufacturer, or service provider can register on GeM, including:

• Sole proprietors
  
  

• Partnership firms
  
  

• LLPs
  
  

• Private limited companies
  
  

• NGOs and cooperatives
  
  

• Manufacturers, OEMs (Original Equipment Manufacturers), and authorized resellers

MSMEs with a valid Udyam Registration are especially encouraged to register and are given additional benefits.

Types of Products and Services You Can Sell

GeM is not limited to just a few items. You can offer:

Products

• Office supplies (paper, computers, printers)
  
  

• Furniture
  
  

• Electrical and electronic goods
  
  

• Industrial tools
  
  

• Machinery and equipment
  
  

• Vehicles and auto parts
  
  

• Agricultural products
  
  

• Textiles and garments

Services

• Housekeeping
  
  

• Security
  
  

• Transportation
  
  

• Printing and designing
  
  

• IT and software
  
  

• Consultancy
  
  

• Manpower supply
  
  

• Event management

How GeM Helps MSMEs Win Government Contracts

Let’s understand how the GeM portal is designed to support MSMEs:

1. Special MSME Preferences

The government has mandated that at least 25% of all procurement must be from MSMEs. On GeM, MSME-tagged sellers get priority listing and increased visibility.

2. Price Preference

MSMEs can offer up to 15% higher price and still be selected if they are local or meet special government criteria.

3. Reserved Categories

Certain products are reserved only for MSME suppliers. This prevents competition from large corporations in those areas.

4. Quick Payment Cycles

MSME vendors receive payments within 10–15 days in most cases, as per the GeM payment policy. This helps maintain better cash flow.

5. Transparency in Bidding

All tenders, bids, and orders are visible online. You can see what the government is buying and at what price.

6. Dynamic Pricing and Comparisons

You can adjust your prices based on the market demand. Buyers can compare your products with others, so offering a good price and service helps win more orders.

7. No Need for Tender Participation for Small Orders

For orders below ₹25,000, buyers can directly purchase from any listed seller on GeM. This gives MSMEs a chance to make regular small sales without entering the bidding process.

Types of Orders on GeM

There are mainly three types of procurement methods used on GeM:

1. Direct Purchase
   
   

• For orders below ₹25,000
  
  

• Buyers can purchase directly from listed sellers without any competition
  
  

2. L1 Purchase
   
   

• For orders between ₹25,000 to ₹5 lakh
  
  

• The buyer selects the seller with the lowest price (L1) among all offers
  
  

3. Bidding/Reverse Auction
   
   

• For orders above ₹5 lakh
  
  

• Sellers compete by bidding, and the one with the best price and terms wins

GeM Features Beneficial for MSMEs

1. GeM SAHAY

• It is a digital lending service for GeM sellers
  
  

• MSMEs can apply for working capital loans directly linked to GeM orders
  
  

• No collateral needed
  
  

• Fast approval based on GeM order value

2. GeM Grievance Redressal

• Sellers can file complaints online
  
  

• Dedicated support to resolve issues quickly

3. GeM Startup Runway

• Encourages innovative startups to showcase and sell their products even if they’re not standard catalog items

4. Seller Training Programs

• Free online and offline training sessions for MSMEs to understand how to use the portal effectively

Tips for MSMEs to Succeed on GeM

1. Complete Your Profile: Make sure your profile is 100% filled with correct documents, images, product details, and certifications.
   
   

2. Stay Competitive: Regularly review competitor prices and update your pricing to stay competitive.
   
   

3. Ensure Good Ratings: Deliver quality products on time to get good reviews. Higher ratings attract more buyers.
   
   

4. Respond to Bids Quickly: Always respond to tenders and reverse auctions within deadlines.
   
   

5. Track Payments: Use the GeM platform to track invoice status and follow up on delayed payments.
   
   

6. Use GeM SAHAY If Needed: If you need working capital, apply through GeM SAHAY. It’s simple and secure.

Note: Now, easily list your product on the gem portal through the Gem catalogue service

Conclusion

The GeM Portal is a powerful tool that has changed the way small businesses work with the government. For MSMEs in India, it offers a direct, fair, and profitable way to sell products and services to one of the largest buyers in the country—the Government of India.

By registering on GeM, MSMEs gain access to thousands of purchasing agencies, regular orders, fair competition, and prompt payments. The platform is simple, transparent, and designed to uplift small businesses.

If you’re an MSME owner, registering on GeM can be one of the most important decisions for growing your business. With the right approach, quality offerings, and competitive pricing, your business can thrive on the GeM platform