Government e-Marketplace (GeM): Key Notes & Top 25 MCQs for UPSC
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GeM – Government e-Marketplace: India’s online platform for public procurement, connecting government buyers with verified sellers for transparent and efficient trade.
If you are a trader, running a startup, or an MSME, then the Government e-Marketplace (GeM) can be a golden opportunity for you. It is a digital platform launched by the Government of India, where you can sell products and services directly to government departments. It is now possible to transact without middlemen and in a transparent manner. This article is a complete GeM guide, in which you will know what GeM is, how to register, what documents are required, and how to get orders. If you want to become a government buyer or sell to them in the digital age, then this article will definitely help you.
Summary Table on the Article: Government e-Marketplace (GeM)
| Category | Details |
|---|---|
| What is GeM? | GeM is a digital portal launched by the Government of India to streamline public procurement and promote transparency and efficiency. |
| Key Features |
- Paperless and cashless platform - Direct access to government buyers - Real-time order tracking and analytics - Transparent bidding and reverse auctions |
| Benefits |
- Saves time and cost in procurement - Boosts MSME and startup participation - Ensures fair competition and quality supply - Encourages digital governance |
What is the Government e-Marketplace (GeM)?
Government e-Marketplace is an online portal developed by the Government of India for government departments to make purchases easily and transparently.
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It is a direct platform to connect government departments and sellers.
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This eliminates the role of middlemen and reduces costs.
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It provides an e-bidding and procurement system to increase transparency and competition.
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This gives more opportunities to MSMEs, startups, and women entrepreneurs.
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It improves quality and saves time in government procurement.
Why should you sell on GeM?
If you become a seller on GeM, your business can have many benefits.
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You can sell directly to 7000+ departments of the Government of India, which is a large customer base.
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Small and medium businesses are given priority, which increases opportunities.
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The payment process is fast and transparent—payment guaranteed in a maximum of 10 days.
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Your brand value is also created on the GeM portal, which also helps in the private market in the future.
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Once registered, you can sell services or goods to the government across India.
How can you start selling on GeM?
Follow the steps given below to become a GeM seller:
Go to https://gem.gov.in, the GeM portal, and select Seller Registration.
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Create a user account with PAN, Aadhaar, mobile number, and email ID.
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Fill in the business details—company name, bank account, GSTIN, Udyam registration, etc.
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Upload the required documents—PAN, GST, Aadhaar card, cancelled check, and company certificate.
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List the product or service on GeM and send it for approval.
Who is allowed to sell on GeM?
Many types of people and companies can become sellers on the GeM portal:
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MSMEs (Micro, Small, and Medium Enterprises)
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Startups and individual traders
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Cooperative societies, trusts, and SHGs (Self-Help Groups)
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Women entrepreneurs and young entrepreneurs
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Suppliers and dealers of government companies
How do you add a product to GeM?
Once the seller account is created, you need to list your services or products:
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Log in and click on "Add New Product/Service."
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Fill in the product name, category, brand, HSN code, unit, etc.
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Add the product pictures, specifications, and price carefully.
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Double-check all the details before final submission.
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Once the listing is approved, it will be visible to government buyers.
How can you get orders on GeM?
The process of getting an order on GeM is transparent and automatic.
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Government departments place orders after checking your listing.
Order alerts will be sent to you via SMS and email.
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Supply the product or deliver the service as per the timeline.
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After delivery, generate an e-invoice and upload it to the portal.
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After verification, the payment is transferred directly to your bank account.
Categories and Products That Can Be Sold on GeM
| Category | Example Products |
|---|---|
| Office Supplies | Printers, stationery, files, pens, and toner cartridges |
| IT & Electronics | Laptops, desktops, monitors, networking devices, UPS |
| Furniture | Office tables, chairs, storage units, and modular workstations |
| Healthcare Products | Masks, sanitizers, gloves, medical equipment, and hospital beds |
| Automobiles & Spares | Two-wheelers, commercial vehicles, tyres, batteries, spare parts |
| Services | Housekeeping, manpower, security, catering, IT services |
What sells the most on GeM?
Some of the goods and services that are most purchased on GeM:
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Computers, laptops, printers, UPS
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Stationery, furniture, and electronic equipment
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Sanitizers, masks, and medical supplies
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Office cleaning services, security services, logistics supplies
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Software, cloud services, website development
What are the risks in using GeM?
Like every platform, it is important to keep some things in mind on GeM:
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Fill in only verified and certified information; otherwise, your account may be suspended.
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Maintain timely delivery and quality, as government buyers have strict policies.
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Follow all government rules and tax regulations diligently.
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Do all communication through email to avoid any disputes with customers.
How can you get training for GeM?
The government has provided several support tools to make GeM easier:
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GeM Helpdesk – Support via phone, email, and chat.
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GeM Learning Portal—Videos, PDFs, and interactive courses are available.
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District Business Facilitators are also available in every state to support small businesses.
Top 25 MCQs on Government e-Marketplace (GeM) for UPSC
Test your understanding of Government e-Marketplace (GeM) through 25 carefully designed UPSC-level MCQs covering procurement processes, features, governance reforms, transparency, efficiency, and digital public infrastructure.
1. What is the primary purpose of the Government e-Marketplace (GeM)?
a) To sell government land
b) To facilitate online procurement of goods and services by government organizations
c) To provide loans to farmers
d) To sell consumer electronics to the public
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Answer: b) To facilitate online procurement of goods and services by government organizations
GeM is a one-stop portal to create an open, efficient, and transparent procurement system for government buyers.
2. When was the GeM portal launched?
a) 2014
b) 2016
c) 2018
d) 2020
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Answer: b) 2016
It was launched on August 9, 2016, by the Ministry of Commerce and Industry to transform public procurement in India.
3. Which ministry administers the GeM Special Purpose Vehicle (SPV)?
a) Ministry of Finance
b) Ministry of Electronics and Information Technology
c) Ministry of Commerce and Industry
d) Ministry of Home Affairs
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Answer: c) Ministry of Commerce and Industry
Specifically, it operates under the administrative control of the Department of Commerce within this ministry.
4. Which Rule of the General Financial Rules (GFR) 2017 mandates procurement through GeM for government entities?
a) Rule 140
b) Rule 149
c) Rule 155
d) Rule 160
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Answer: b) Rule 149
Rule 149 makes it mandatory for Ministries/Departments to procure common use Goods & Services available on GeM.
5. Who are the authorized "Buyers" on GeM?
a) General Public
b) Private Companies
c) Central/State Govt Ministries, Departments, PSUs, and Autonomous Bodies
d) Foreign Governments
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Answer: c) Central/State Govt Ministries, Departments, PSUs, and Autonomous Bodies
Only authorized government representatives can register as Primary or Secondary buyers to make purchases.
6. What is the limit for "Direct Purchase" without comparison on GeM for general buyers?
a) ₹10,000
b) ₹25,000
c) ₹50,000
d) ₹1,00,000
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Answer: b) ₹25,000
For purchases up to ₹25,000, buyers can select any seller meeting their quality specifications directly.
7. For procurements between ₹25,000 and ₹5,00,000, what is the mandatory comparison criterion?
a) Compare 2 products
b) Compare at least 3 different manufacturers/OEMs and select L1
c) Select the most expensive one
d) No comparison needed
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Answer: b) Compare at least 3 different manufacturers/OEMs and select L1
Buyers must compare products from at least three different Original Equipment Manufacturers (OEMs) and choose the lowest price (L1).
8. What is the mandatory procurement method for purchases above ₹5,00,000 on GeM?
a) Direct Purchase
b) e-Bidding or Reverse Auction (RA)
c) Negotiation
d) Lucky Draw
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Answer: b) e-Bidding or Reverse Auction (RA)
Buyers must initiate a bid or RA to ensure fair competition and get the best market price for higher-value procurements.
9. Which unique initiative allows startups to offer their products on GeM for trial orders?
a) Startup Corner
b) Womaniya
c) Startup Runway
d) Trial Track
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Answer: c) Startup Runway
It enables startups to list innovative products that may not have standard categories yet, facilitating government market access.
10. What is "GeM Sahay"?
a) A helpline number
b) A mobile app for lending/financing to GeM sellers
c) A logistics service
d) A training program
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Answer: b) A mobile app for lending/financing to GeM sellers
It provides frictionless, point-of-presence financing to sole proprietorships against GeM purchase orders.
11. The "Womaniya" initiative on GeM is designed to support:
a) Women buyers only
b) Women entrepreneurs and Women Self Help Groups (SHGs)
c) Female government officers
d) Women in tech
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Answer: b) Women entrepreneurs and Women Self Help Groups (SHGs)
It creates a dedicated space to showcase handicraft, handloom, and other products made by women entrepreneurs.
12. What does "OEM" stand for in the context of GeM sellers?
a) Online Electronic Market
b) Original Equipment Manufacturer
c) Official Enterprise Member
d) Open E-Market
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Answer: b) Original Equipment Manufacturer
OEMs are the actual producers of goods. GeM classifies sellers as either OEMs or Resellers.
13. GeM is a completely paperless, cashless, and _______ system.
a) Contactless
b) Wireless
c) System-driven (Transparent)
d) Manual
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Answer: c) System-driven (Transparent)
Its goal is to eliminate human interface in vendor registration, order placement, and payment processing to reduce corruption.
14. Which bank manages the GeM Pool Account (GPA) for payments?
a) Only SBI
b) Only RBI
c) Multiple authorised banks
d) World Bank
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Answer: c) Multiple authorised banks
While started with limited banks, GeM now integrates with many public and private sector banks for GPA services.
15. What is the "Incident Management" system on GeM used for?
a) Reporting fires
b) Reporting bad behavior, product quality issues, or non-delivery by sellers/buyers
c) Tracking shipment location
d) Requesting discounts
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Answer: b) Reporting bad behavior, product quality issues, or non-delivery by sellers/buyers
It allows users to raise tickets against defaulters, leading to potential warnings, suspensions, or debarment.
16. Does GeM charge a registration fee for sellers?
a) Yes, ₹5000
b) Yes, ₹10,000
c) No, registration is free
d) Only for large companies
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Answer: c) No, registration is free
Any seller can register for free, though transaction charges may apply on the order value after a successful sale.
17. GeM is integrated with which portal for MSME verification?
a) Udyam Registration (Udyog Aadhaar)
b) PAN Portal
c) GST Network
d) Income Tax Portal
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Answer: a) Udyam Registration (Udyog Aadhaar)
This integration verifies if a seller is a Micro, Small, or Medium Enterprise (MSME) to avail specific benefits.
18. What is the concept of "Bunching" on GeM?
a) Buying fruits
b) Grouping similar or related items into a single bid
c) Combining buyers
d) Shipping items together
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Answer: b) Grouping similar or related items into a single bid
This allows buyers to procure a kit of items (e.g., Computer + Mouse + Keyboard) from a single seller.
19. GeM 4.0 (the current advanced version) emphasizes which technology for transparency?
a) Blockchain
b) Artificial Intelligence (AI) and Analytics
c) Virtual Reality
d) 5G
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Answer: b) Artificial Intelligence (AI) and Analytics
It uses advanced analytics to detect fraud, anomalies in pricing, and improve search results.
20. Which document is crucial for "Vendor Assessment" on GeM for OEMs?
a) Driving License
b) QCI (Quality Council of India) Report
c) Voter ID
d) Ration Card
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Answer: b) QCI (Quality Council of India) Report
For certain categories, OEMs must undergo Vendor Assessment by QCI to verify their manufacturing capacity and quality.
21. The "SWAYATT" initiative associated with GeM aims to promote:
a) Startups, Women, and Youth Advantage through eTransactions
b) Solar energy
c) Water conservation
d) Software export
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Answer: a) Startups, Women, and Youth Advantage through eTransactions
It promotes the inclusion of Startups, Women, and Youth Entrepreneurs on the GeM portal.
22. What happens in a "Reverse Auction" (RA) on GeM?
a) Prices go up
b) Sellers compete to offer the lowest price
c) Buyers compete to offer highest price
d) Auction runs backwards in time
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Answer: b) Sellers compete to offer the lowest price
Unlike a forward auction (selling to highest bidder), an RA drives prices down as sellers undercut each other to win the contract.
23. "CRAC" in the GeM payment cycle stands for:
a) Consignee Receipt and Acceptance Certificate
b) Central Road and Construction
c) Credit Rating and Checking
d) Computer Resource Access Control
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Answer: a) Consignee Receipt and Acceptance Certificate
Generation of CRAC by the buyer confirms goods were received and accepted, triggering the payment timeline (usually 10 days).
24. GeM recently surpassed the Gross Merchandise Value (GMV) milestone of _____ in FY 2023-24.
a) ₹1 Lakh Crore
b) ₹2 Lakh Crore
c) ₹4 Lakh Crore
d) ₹10 Lakh Crore
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Answer: c) ₹4 Lakh Crore
This milestone highlights the massive scale and adoption of the platform by government agencies.
25. What is "GeM Samvaad"?
a) A software update
b) An outreach program to connect with sellers and buyers across India
c) A chat bot
d) A complaint box
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Answer: b) An outreach program to connect with sellers and buyers across India
It involves workshops and training sessions to spread awareness and onboard new users to the platform.
Conclusion: Give Government Business a Boost with the GeM Portal
Now that you know what GeM is, how to register, and what the benefits are, it is clear that this portal is a powerful medium to connect government buyers and sellers. It provides transparency, trust, and new business opportunities, especially for MSMEs and startups. If you are a small trader or starting a new business, become a GeM Seller today and scale your business to the national level.
Online Courses, Reference Books, & Websites
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| Online Courses | |
| Reference Books |
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| Websites |
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Really understood GEM reading this.
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