GeM Samvad 2026 Unveils Groundbreaking Reforms to Boost MSMEs' Access to Public Procurement

The GeM–LUB partnership has facilitated 108 virtual conferences to expand MSME access to government procurement opportunities. GeM has implemented reforms to improve public procurement access and affordability for MSEs, including reducing transaction charges and vendor assessment fees. These efforts aim to support the vision of Atmanirbhar Bharat and Viksit Bharat 2047.

Reported by 4 sources

PIB →PIB →PIB →PIB →

Quick Revision

Prelims-testable facts

01GeM has reduced transaction charges from 0.50% to 0.30% of the order value.
02Orders up to ₹10 lakh are exempt from transaction charges.
03For orders above ₹10 crore, charges are capped at ₹3 lakh.
04Nearly 97% of orders placed on GeM attract no transaction charges.
05The requirement for a Caution Money deposit as part of the onboarding process was dispensed with in July 2025.
06Vendor assessment charges applicable to Original Equipment Manufacturers (OEMs) have been reduced by 66% to 92% since January 2024.
07GeM has integrated with all five Trade Receivables Discounting System (TReDS) exchanges, enabling MSMEs to access timely payment and working capital support.

Trap alerts

Most people think GeM's main goal is to reduce government procurement costs, but actually its primary objective is to improve public procurement access and affordability for Micro and Small Enterprises (MSEs).
Most people think GeM's transaction charges are 0.30% for all orders, but actually orders above ₹10 crore have charges capped at ₹3 lakh.
Most people think GeM's partnership with LUB is a new initiative, but actually the MoU was formalised in 2024.

Current-affairs link

The Ministry of Commerce & Industry has highlighted the growth of GeM, with a total procurement value of ₹5.03 lakh crore in FY 2025-26, of which ₹2.37 lakh crore (≈47%) went to MSMEs, startups, women entrepreneurs and Self-Help Groups (SHGs).

Prelims Practice MCQs

Single facteasy

What is the new transaction charge percentage on the GeM platform?

A.0.20%
B.0.30%
C.0.40%
D.0.50%

The GeM has reduced transaction charges from 0.50% to 0.30% of the order value.

Multiple statementsmedium

Consider the following statements regarding GeM Transaction Charges: 1. The GeM has reduced transaction charges from 0.30% to 0.20% of the order value. 2. Orders up to ₹10 lakh are exempt from transaction charges. 3. For orders above ₹10 crore, charges are capped at ₹2 lakh. How many of the above statements are correct?

A.Only one
B.Only two
C.All three
D.None

Statement 1 is false because the fact list states that the GeM has reduced transaction charges from 0.50% to 0.30%, not 0.20%. Statement 2 is true because the fact list states that orders up to ₹10 lakh are exempt from transaction charges. Statement 3 is false because the fact list states that for orders above ₹10 crore, charges are capped at ₹3 lakh, not ₹2 lakh.

← All current affairs