Uttar Pradesh has become the first Indian state to fully integrate its procurement with the Government e-Marketplace (GeM), replacing outdated tendering systems. This shift ensures transparency, saves over ₹2,000 crore annually, and promotes equitable opportunities for suppliers, including MSMEs. The move standardizes processes, eliminates corruption, and sets a model for other states, enhancing India’s public procurement landscape.
Uttar Pradesh Pioneers Transparent Procurement with GeM Integration
In a landmark move, Uttar Pradesh has emerged as the trailblazer in India’s public procurement landscape by fully adopting the Government e-Marketplace (GeM) for all government purchases. On November 26, 2024, the state government issued a comprehensive order, annulling over 33 outdated procurement directives, effectively dismantling its traditional tendering system. This bold step aligns Uttar Pradesh with GeM’s digital platform, ensuring transparency, efficiency, and inclusivity in public procurement.
The GeM platform, launched in 2016 by the Ministry of Commerce and Industry, is a unified digital marketplace designed to streamline procurement for central and state government entities, public sector undertakings, and local bodies. Uttar Pradesh’s decision to mandate GeM for all procurement activities marks a significant departure from the state’s earlier Procurement Manual of 2016, which had become obsolete with the advent of GeM. The earlier system, riddled with multiple rules, often led to errors, discretionary practices, and inefficiencies, discouraging widespread adoption of the digital platform.
By integrating fully with GeM, Uttar Pradesh expects to save over ₹2,000 crore annually, a conservative estimate based on streamlined processes and competitive pricing. The platform’s tools, such as e-bidding, reverse e-auctions, and demand aggregation, ensure government buyers achieve the best value for money. Krishna Murari, deputy CEO (UP) of GeM, played a pivotal role in aligning the state’s procurement processes with the platform, ensuring seamless adoption across departments.
A notable example of GeM’s impact is seen in the Uttar Pradesh Building and Other Construction Workers Welfare Board, which utilized the platform to procure quality infrastructure materials, including furniture and IT equipment, for 18 Atal Residential Schools. These schools, established to provide education for children orphaned during the COVID-19 pandemic, benefited from swift delivery at competitive prices, showcasing GeM’s efficiency and reach.
The shift to GeM eliminates entry barriers for suppliers, particularly micro, small, and medium enterprises (MSMEs), startups, and women entrepreneurs. By standardizing procurement and enforcing compliance with GeM regulations, Uttar Pradesh ensures equitable opportunities for all suppliers. Non-compliance with GeM protocols could result in disqualification from conducting business with the state government, reinforcing the platform’s authority.
Nationally, GeM has transformed public procurement, handling over ₹15 lakh crore in cumulative Gross Merchandise Value (GMV) since its inception. Uttar Pradesh’s full adoption sets a precedent for other states, with Maharashtra, Gujarat, and others already integrating GeM with their financial management systems. The platform’s use of advanced technologies, including AI-driven tools like GeMAI, enhances transparency by detecting fraud and streamlining decision-making.
Uttar Pradesh’s move is a step toward realizing Prime Minister Narendra Modi’s vision of Viksit Bharat 2047, a developed India by its centennial independence. By replacing opaque, corruption-prone systems with a digital, transparent marketplace, the state not only boosts efficiency but also empowers marginalized suppliers, fostering inclusive economic growth. As GeM continues to evolve, Uttar Pradesh’s pioneering adoption serves as a blueprint for nationwide procurement reform.
Disclaimer: This article is based on recent news reports, official statements from the Government e-Marketplace, and insights from sources like the Times of India and Hindustan Times. Data is accurate as of September 2, 2025, and subject to updates as new information emerges. Readers are encouraged to verify details through official GeM channels.