The State-run Government e-Marketplace (GeM) has reported a 7.4% decline in transactions in the financial year 2026, amidst growing concerns over the platform’s growth trajectory. The e-marketplace, which has been instrumental in promoting digital public procurement across various sectors, witnessed a 7.4% drop in transactions, with the gross merchandise value (GMV) plummeting to Rs. 1.23 trillion. The numbers are a stark contrast to the previous year’s performance, where the platform saw a significant surge in transactions and revenue. The decline in transactions has sparked concerns over the platform’s effectiveness and the need for a revamp.
Decline in Transactions: A Cause for Concern
The 7.4% decline in transactions has been attributed to various factors, including the increasing competition from private e-marketplaces and the growing preference for cash-based transactions among small and medium-sized enterprises (SMEs). Additionally, the platform’s focus on digital payment infrastructure has been seen as a double-edged sword, with many users complaining about the complexity and high transaction fees associated with digital payments. The decline in transactions has also been linked to the lack of awareness about the platform’s benefits and the need for more aggressive marketing and outreach efforts.
The decline in transactions has significant implications for the Indian economy, particularly in the context of public procurement. The Government e-Marketplace has been instrumental in promoting transparency and accountability in public procurement, and a decline in transactions could undermine these efforts. Furthermore, the decline in transactions could also have a negative impact on the growth of MSMEs, which are a crucial component of the Indian economy.
Digital Payment Infrastructure: A Key Area of Focus
The Government e-Marketplace has been working towards enhancing its digital payment infrastructure, with a focus on reducing transaction fees and increasing user adoption. The platform has introduced various initiatives, including a reduced transaction fee for digital payments and a revamped payment gateway. However, the efforts have been met with limited success, with many users continuing to opt for cash-based transactions. The platform’s focus on digital payment infrastructure is essential, given the growing importance of digital payments in the Indian economy. However, it is also crucial to address the concerns of users and provide a more user-friendly payment experience.
The Government e-Marketplace has also partnered with various payment aggregators to enhance its digital payment infrastructure. The platform has also introduced a revamped payment gateway, which aims to reduce transaction fees and increase user adoption. However, the success of these initiatives will depend on the platform’s ability to address the concerns of users and provide a more user-friendly payment experience.
Way Forward: Revamping the Platform
The decline in transactions has sparked concerns over the platform’s effectiveness and the need for a revamp. The Government e-Marketplace needs to address the concerns of users and provide a more user-friendly experience. This includes reducing transaction fees, increasing awareness about the platform’s benefits, and introducing more aggressive marketing and outreach efforts. The platform also needs to focus on enhancing its digital payment infrastructure, with a focus on reducing transaction fees and increasing user adoption. By revamping the platform, the Government e-Marketplace can regain its position as a leading e-marketplace in India and promote digital public procurement across various sectors.
The Government e-Marketplace has the potential to play a crucial role in promoting digital public procurement across various sectors. However, the decline in transactions has highlighted the need for a revamp. By addressing the concerns of users and introducing more aggressive marketing and outreach efforts, the platform can regain its position as a leading e-marketplace in India. The success of the platform will depend on its ability to adapt to the changing needs of users and provide a more user-friendly experience.
