GeM Portal and the Make in India Initiative: How It Supports Local Businesses

India’s economic growth is deeply tied to its local businesses and manufacturing sector. Recognizing this, the Government of India launched two transformative programs: the GeM Portal and the Make in India initiative. While the Make in India initiative focuses on strengthening domestic manufacturing and self-reliance, the GeM portal provides an efficient digital platform for businesses to sell their goods and services to government buyers. Together, these initiatives empower local businesses, MSMEs, and startups by increasing procurement opportunities and promoting indigenous products.

Understanding the Make in India Initiative

Launched in 2014, the Make in India initiative aims to turn India into a global manufacturing hub. It encourages domestic and foreign investments in key sectors such as defense, textiles, electronics, and automobiles. The initiative also focuses on job creation, innovation, skill development, and infrastructure growth.

Key Objectives of Make in India:

Boost domestic manufacturing and reduce reliance on imports

Enhance ease of doing business

Promote FDI (Foreign Direct Investment) in key sectors

Increase the contribution of manufacturing to GDP

Strengthen self-reliance and export potential

This initiative aligns with Aatmanirbhar Bharat (Self-Reliant India) by promoting products that are made in India, ensuring economic resilience.

What is the GeM Portal?

The Government e-Marketplace (GeM) is a digital procurement platform established in 2016 by the Government of India. It enables government departments, ministries, and PSUs (Public Sector Undertakings) to procure goods and services transparently and efficiently.

Steps to apply for GeM Portal

1. Visit the GeM Website: Go to the official GeM registration portal.
2. Enter Details: Fill in basic information like name, email, phone number, and date of birth.
3. OTP Verification: Enter the OTP received via SMS or email.
4. GeM Confirmation: A GeM representative will call to confirm your OTP.
5. Complete Registration: After verification, your registration is complete.
6. Get GeM ID: Receive your seller ID and login credentials via email.
7. Set Up Profile: Log in, set up your profile, and list your products.
8. Submit Caution Money: You'll be notified to submit caution money.
9. Select Product Listing: On the dashboard, click Product Listing to add new products or manage your existing ones.
10. Choose Product Category: Pick the correct category for your product. This helps government buyers find your product easily.
11. Start Selling: Your products are now visible to government buyers, and you can begin receiving orders.

How GeM Portal Supports the Make in India Initiative

The GeM portal and the Make in India initiative are closely interconnected, offering local businesses significant advantages in the government procurement process. Here’s how:

1. Priority to Local Suppliers and MSMEs

The GeM portal gives preference to domestically manufactured products, ensuring that government procurement supports Indian businesses. Under GeM’s Make in India policy, government buyers are encouraged to procure goods that have a minimum of 50% local content, boosting demand for Indian-made products.

2. Reserved Procurement for MSMEs

Under the Public Procurement Policy for MSMEs (2012), 25% of annual procurement by government agencies is reserved for MSMEs. Since most MSMEs contribute to the Make in India initiative, this policy directly benefits local manufacturers.

3. GeM’s Preference for Make in India Products

The GeM portal has introduced filters that allow government buyers to identify and prioritize products marked under the Make in India category. Businesses can declare the local content percentage of their products, and higher local content provides them priority ranking in procurement.

4. Boosting Indigenous Manufacturing and Employment

When government agencies source products from Indian manufacturers via GeM, it fuels demand for domestic production, leading to increased employment opportunities in sectors like textiles, electronics, and handicrafts.

5. Encouraging Startups and Innovation

Startups are a crucial part of the Make in India initiative. The Startup Runway on the GeM portal allows innovative startups to showcase and sell their unique products directly to government buyers, helping them gain visibility and revenue.

6. Promoting ‘Vocal for Local’

GeM aligns with the Vocal for Local movement by ensuring that government procurement prioritizes Indian goods. This reduces dependency on imports and strengthens the domestic supply chain.

7. Integration with Udyam Registration

The GeM portal integrates with the Udyam Registration system, making it easier for MSMEs to register and participate in government tenders without excessive paperwork.

Future of GeM and Make in India

With the expansion of digital procurement and increasing government reliance on Indian manufacturers, the GeM-Make in India synergy will only grow stronger. The government is focusing on improving platform usability, expanding procurement categories, and ensuring faster payment cycles to make GeM even more beneficial for businesses.

Suggested read- process of gem bidding.

Conclusion

The GeM Portal and the Make in India initiative together provide a robust platform for local businesses to thrive. By offering a transparent, digital, and efficient procurement system, GeM ensures that Indian businesses, especially MSMEs, gain access to government contracts, boosting local manufacturing and economic growth. As India progresses toward self-reliance, the integration of these initiatives will continue to strengthen domestic industries and foster a thriving entrepreneurial ecosystem.