“Uttar Pradesh has become the first state to fully adopt the Government e-Marketplace (GeM), replacing outdated tendering systems with a transparent, efficient digital platform. This shift is expected to save over Rs 2,000 crore annually while empowering MSMEs and ensuring equitable procurement opportunities.”
Uttar Pradesh Pioneers Transparent Procurement with GeM
In a landmark move, Uttar Pradesh has emerged as the trailblazer in public procurement by fully integrating its processes with the Government e-Marketplace (GeM), a digital platform launched by the Ministry of Commerce and Industry in 2016. On November 26, 2024, the state issued a government order annulling over 33 obsolete procurement directives, mandating all government purchases to be conducted through GeM. This makes Uttar Pradesh the first state in India to completely eliminate traditional tendering systems, setting a new standard for transparency and efficiency in public procurement.
The GeM platform, designed to streamline government purchases, has enabled Uttar Pradesh to address inefficiencies and potential misuse inherent in older systems. By standardizing procurement procedures, the state has ensured equitable opportunities for suppliers, particularly micro, small, and medium enterprises (MSMEs). Official estimates suggest that this transition will save the state over Rs 2,000 crore annually, a significant boost to fiscal efficiency. The move aligns with Prime Minister Narendra Modi’s vision of transparent governance and inclusive economic growth under the Viksit Bharat 2047 initiative.
A notable example of GeM’s impact in Uttar Pradesh is the procurement of infrastructure materials for 18 Atal Residential Schools, established to provide quality education to children orphaned during the COVID-19 pandemic. Through GeM, the Uttar Pradesh Building and Other Construction Workers Welfare Board efficiently sourced furniture and IT equipment at competitive prices, ensuring swift delivery and high-quality standards. This initiative highlights how GeM empowers state entities to meet critical needs while maintaining cost-effectiveness.
The adoption of GeM has also democratized access for suppliers. By scrapping the state’s 2016 Procurement Manual, which predated GeM and created compliance challenges, Uttar Pradesh has removed barriers for small businesses. The platform’s tools, such as e-bidding and reverse auctions, have enabled suppliers, including startups and women-led enterprises, to compete on a level playing field. Krishna Murari, deputy CEO of GeM in Uttar Pradesh, played a pivotal role in streamlining these processes, ensuring seamless integration with the state’s financial systems.
Nationally, GeM has achieved remarkable milestones, crossing Rs 15 lakh crore in cumulative Gross Merchandise Value (GMV) since its inception, with Rs 5.43 lakh crore transacted in 2024-25 alone. Uttar Pradesh’s leadership in mandating GeM usage has inspired other states like Maharashtra, Gujarat, and Assam to integrate the platform with their financial management systems, enhancing end-to-end transparency. The platform’s AI-powered chatbot, GeMAI, and initiatives like the GeM Sahayak program further simplify procurement, offering support to sellers and buyers alike.
Uttar Pradesh’s shift to GeM has also curbed discretionary practices that plagued traditional procurement. Any deviation from GeM protocols now risks disqualification from state contracts, ensuring strict adherence to standardized rules. This move has been lauded by Union Commerce and Industry Minister Piyush Goyal, who described GeM as a “true gem” for fostering transparency and empowering marginalized communities. As Uttar Pradesh leads the way, other states are poised to follow, potentially transforming India’s public procurement landscape into one of the most transparent and inclusive systems globally.
Disclaimer: This article is based on information sourced from recent news reports, official statements from the Government e-Marketplace, and updates from credible sources such as Times of India, Hindustan Times, and government portals. The data reflects real-time developments as of September 2, 2025. Readers are advised to verify details through official channels for the latest updates.