“Uttar Pradesh has become the first Indian state to fully adopt the Government e-Marketplace (GeM) for all government procurement, replacing outdated tendering systems. This move ensures transparency, efficiency, and significant cost savings, with an estimated Rs 2,000 crore saved annually. The initiative supports equitable opportunities for suppliers and sets a model for other states.”
Uttar Pradesh Sets Benchmark in Public Procurement with GeM Adoption
In a landmark move, Uttar Pradesh has become the first state in India to fully integrate its procurement processes with the Government e-Marketplace (GeM), scrapping traditional tendering methods to enhance transparency and efficiency. This transition, formalized through a government order issued on November 26, 2024, annulled over 33 outdated procurement directives, aligning the state’s purchasing framework with GeM’s standardized protocols.
The shift to GeM, a digital platform launched in 2016 by the Ministry of Commerce and Industry, eliminates the inefficiencies of the state’s previous procurement manual, established in 2016 before GeM’s inception. Official sources highlight that the earlier system, with its multiple and varied rules, often led to unintentional errors, discouraged GeM adoption, and raised concerns about discretionary practices. By mandating GeM compliance, Uttar Pradesh ensures a streamlined, corruption-free process that promotes fair competition among suppliers.
The adoption has already shown tangible benefits. The Uttar Pradesh Building and Other Construction Workers Welfare Board recently utilized GeM to procure high-quality infrastructure materials, including furniture and IT equipment, for 18 Atal Residential Schools, established to provide education for children orphaned during the COVID-19 pandemic. This procurement was completed swiftly at competitive prices, demonstrating GeM’s efficiency in delivering value.
State officials estimate annual savings of over Rs 2,000 crore through GeM-based procurement, a conservative figure reflecting the platform’s ability to secure competitive pricing through tools like e-bidding and reverse e-auctions. Krishna Murari, deputy CEO (UP) of GeM, played a pivotal role in aligning the state’s processes with the platform, ensuring seamless integration across departments.
Uttar Pradesh’s move sets a precedent for other states, with its model being promoted nationwide to encourage uniform adoption. The state’s commitment to GeM underscores its broader vision of leveraging digital infrastructure to drive governance reforms, aligning with Prime Minister Narendra Modi’s push for transparent and inclusive public procurement. States like Maharashtra, Gujarat, Assam, and Kerala have also begun integrating GeM with their financial management systems, but Uttar Pradesh’s comprehensive adoption marks a significant milestone.
The GeM platform, handling a gross merchandise value of over Rs 15 lakh crore since its inception, has revolutionized public procurement by connecting over 1.6 lakh government buyers with 23 lakh sellers, including micro and small enterprises (MSEs). In Uttar Pradesh, this inclusivity ensures that even small vendors and startups can compete on a level playing field, fostering economic growth and empowerment.
Non-compliance with GeM protocols could lead to disqualification from conducting business with the Uttar Pradesh government, signaling the state’s firm commitment to maintaining a transparent ecosystem. As GeM evolves with features like GeMAI, a generative AI-powered chatbot, and plans to include works contracts, Uttar Pradesh’s early adoption positions it as a leader in India’s digital procurement revolution.
Disclaimer: This article is based on recent news reports, official statements from the Government e-Marketplace, and insights from credible sources like the Times of India and Hindustan Times. Data is accurate as of September 2025, sourced from publicly available information. Readers are advised to verify details with official GeM or Uttar Pradesh government portals for the latest updates.