“Uttar Pradesh leads India as the first state to fully adopt the Government e-Marketplace (GeM) for public procurement, achieving transparency and efficiency. With over ₹65,227 crore in purchases from 2020–25, UP’s model saves ₹2,000 crore annually, eliminates 33 outdated rules, and empowers MSMEs and startups, earning praise from Union Minister Piyush Goyal.”
Uttar Pradesh Pioneers Transparent Procurement with GeM
Uttar Pradesh has emerged as a trailblazer in India’s public procurement landscape by fully integrating its procurement processes with the Government e-Marketplace (GeM) portal, a move that has redefined transparency and efficiency in government purchasing. On November 26, 2024, the state government issued a comprehensive order, annulling over 33 outdated procurement directives to align fully with GeM’s regulations, making it the first state to abolish its traditional tendering system entirely. This landmark decision has positioned Uttar Pradesh as a model for other states, earning accolades from Union Commerce and Industry Minister Piyush Goyal, who praised Chief Minister Yogi Adityanath’s leadership for its seamless execution of digital governance.
Between the financial years 2020–21 and 2024–25, Uttar Pradesh recorded procurement worth ₹65,227 crore through GeM, contributing significantly to the platform’s nationwide milestone of over ₹14 lakh crore in transactions across 2.9 crore orders. In FY 2024–25 alone, the state executed purchases worth ₹16,828 crore, reflecting its technical proficiency and commitment to policy-driven governance. Key departments such as Urban Development (₹11,588 crore), Health and Family Welfare (₹9,257 crore), and IT and Electronics (₹8,241 crore) have been at the forefront of this transformation, leveraging GeM’s digital infrastructure to streamline processes.
The shift to GeM has eliminated opaque tendering practices, replacing them with a transparent, competitive, and inclusive system. By standardizing procurement under GeM’s General Financial Rules (GFR) 2017 and General Terms and Conditions (GTC), Uttar Pradesh has minimized discrepancies and ensured equitable opportunities for suppliers. The state’s adoption of GeM has led to estimated annual savings of over ₹2,000 crore, driven by competitive pricing and reduced intermediaries. For instance, the Uttar Pradesh Building and Other Construction Workers Welfare Board utilized GeM to procure furniture and IT equipment for 18 Atal Residential Schools, ensuring swift delivery at competitive rates for students, particularly those orphaned during the COVID-19 pandemic.
GeM’s impact extends beyond cost savings. The platform has empowered micro, small, and medium enterprises (MSMEs), startups, and women entrepreneurs by simplifying onboarding and providing access to a vast government market. In Uttar Pradesh, 85% of GeM orders are awarded to MSMEs, fostering grassroots entrepreneurship. Over 30,000 startups have conducted business worth ₹38,500 crore nationwide, with Uttar Pradesh playing a pivotal role. Additionally, nearly 4% of GeM’s procurement value in the state comes from women-led businesses, aligning with the government’s inclusivity goals.
The state’s integration with GeM’s digital ecosystem, including real-time verification through Aadhaar, PAN, and Udyam APIs, ensures end-to-end transparency from tender posting to order fulfillment. Features like e-bidding, reverse auctions, and vendor ratings further enhance accountability and drive down costs. The introduction of GeMAI, a generative AI-powered chatbot, is set to elevate the platform’s efficiency by addressing buyer and seller queries with precision.
Piyush Goyal, in his letter to CM Yogi Adityanath, highlighted Uttar Pradesh’s contribution as a “living example of the Digital India vision,” emphasizing how technology, inclusivity, and effective execution have converged to create a robust procurement model. Other states, including Maharashtra, Gujarat, and Assam, are following suit, integrating GeM with their financial management systems to replicate Uttar Pradesh’s success. The state’s efforts have not only strengthened public administration but also set a benchmark for transparent governance, with the potential to save billions annually while empowering small businesses and driving economic growth.
Disclaimer:
This article is based on information from recent news reports, official statements from the Government e-Marketplace (GeM), and updates from the Press Information Bureau. Data and figures are sourced from publicly available information on GeM’s performance and Uttar Pradesh’s procurement activities. The content is intended for informational purposes and does not constitute official government policy or endorsement.
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GeM, Uttar Pradesh, transparent procurement, public procurement, Digital India, MSMEs, startups, Yogi Adityanath, Piyush Goyal, e-governance, cost savings
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“UP Leads India’s Procurement Revolution with GeM!”
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