Indian Economy News

GeM Samvad 2026 Highlights Reforms to Improve Public Procurement Access and Affordability for MSEs

Government e-Marketplace (GeM), in collaboration with Laghu Udyog Bharati (LUB), organised an event as part of GeM Samvad 2026. The event highlighted reforms aimed at making public procurement more accessible and affordable for micro and small enterprises (MSEs). GeM has reduced transaction charges from 0.50% to 0.30% of the order value. Orders up to Rs. 10 lakh (US$ 10,558.70) are now exempt, compared with the earlier threshold of Rs. 5 lakh (US$ 5,279.35). For orders above Rs. 10 crore (US$ 1.06 million), charges are capped at Rs. 3 lakh (US$ 3,167.61), down from the earlier maximum of Rs. 72.50 lakh (US$ 76,550.56). Nearly 97% of orders attract no transaction charges. Vendor assessment charges for Original Equipment Manufacturers (OEMs) have been reduced by 66-92% since January 2024. The Caution Money deposit requirement for onboarding was dispensed with in July 2025.

Formalised through a Memorandum of Understanding (MoU) in 2024, the GeM-LUB partnership has facilitated 108 virtual conferences. These have supported awareness and digital onboarding of micro, small and medium enterprises (MSMEs). CEO of GeM Mr. Mihir Kumar stated that these reforms have helped MSMEs by reducing participation costs, simplifying processes and improving access to finance. Additional CEO of GeM Mr. Ajit B. Chavan highlighted that, in line with the Union Budget announcement for FY27, GeM has integrated with all five Trade Receivables Discounting System (TReDS) exchanges. Together with GeM SAHAY’s collateral-free lending against purchase orders, this integration is expected to address the working capital challenges faced by MSMEs.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.