GeM Platform Being Opened Up for Foreign Bidders

India’s government e-procurement platform, Government e-Marketplace (GeM), has announced the launch of a “Global Tender Enquiry” feature by 2025.

Through this new system, international bidders will also be able to directly participate in Indian government tenders. This initiative is a significant step towards opening up India’s public procurement sector, consistent with India’s Free Trade Agreements (FTAs) with countries like the United Arab Emirates (UAE) and the United Kingdom (UK). This will enable various ministries to procure goods and services from a wider range of international sellers.

Previous Situation

Until now, international bidders were not allowed to participate directly on the GeM platform. GeM was primarily open only to Indian registered suppliers or sellers. If foreign companies wished to participate in GeM, they typically had to work through an Indian local agent, subsidiary, or authorized distributor.

However, outside of GeM, other avenues existed for international bidders to participate in Indian government tenders, such as:

• Central Public Procurement Portal (CPPP): This is India’s main e-procurement portal (eprocure.gov.in) and is managed by the Ministry of Finance. International companies can participate directly here through International Competitive Bidding (ICB) or Global Tender Enquiry (GTE).
• State e-Procurement Portals: Each state, including Maharashtra, Karnataka, and Tamil Nadu, has its own e-procurement system. International bidders can also participate here, but in such cases, local laws, tax registration (such as PAN, GST), and assistance from an Indian partner may be required.
• ICB (International Competitive Bidding): According to India’s General Financial Rules (GFR) 2017, Global Tender Enquiries (GTE) are in place for high-value goods or services. For example, this applies to large infrastructure projects, defense procurements, oil and gas equipment, etc. International companies can participate directly through CPPP or the tender of the relevant organization.
• Direct Tenders from Public Sector Undertakings (PSU) and Large Ministries: Organizations like ONGC, Indian Railways, NTPC, GAIL invite international tenders through their own procurement portals or CPPP, where foreign bidders can participate.

The key difference was that international bidders could participate directly through CPPP, PSU portals, and ICB, but this was not possible for GeM.

New Feature and its Benefits:

GeM’s new “Global Tender Enquiry” feature will eliminate this long-standing limitation. Through this change:

• A major opportunity will be created for international suppliers, especially those interested in entering the Indian market.
• Competition in government procurement processes will significantly increase, resulting in the government obtaining better value and improved quality goods and services.
• New innovations and increased efficiency will arise through foreign participation.
• All central government procurement in India will converge onto a single platform, making the participation process easier for foreign suppliers.

The total Merchandise Value (GMV) of GeM in the financial year 2024-25 was ₹5.4 lakh crore. This step will not only increase GeM’s efficiency but also help expand it to more states. This initiative signals India’s commitment to creating a global competitive environment in government procurement and strengthening international trade relations.

Reference: GeM to open doors for global bidders