Government e Marketplace (GeM) is India’s largest e‑marketplace for government buyers including Central & State Government Departments, Central & State Public Sector Enterprises, Autonomous Institutions & Local Government bodies including Panchayats & Cooperatives.
In 2025, GeM introduced a new and progressive revenue model a move aligned with its commitment to make public procurement more transparent, competitive and MSME-friendly. The Revenue Policy of GeM 2025 incorporates scalable mechanisms that specifically assist startups and micro, small, and medium-sized businesses, reflecting the changing nature of digital commerce.
Key Features of GeM New Revenue Policy 2025: Overview of Changes and Updates
Formally known as the Revenue Policy of GeM 2025, the revised policy is based on input from industry participants and thorough industry consultation. A more equitable, turnover-based paradigm that promotes diversity and maintains platform sustainability takes the place of the previous framework.
The key components of the policy include:
- Zero Transaction Fee: Sellers are not charged any transaction fee for cumulative orders up to ₹10 lakh annually. This provision provides a vital cost advantage to new and small sellers starting out on GeM.
- Slab-Based Transaction Charges: For sellers exceeding ₹10 lakh in annual order value, a nominal GeM Revenue Policy charge of 0.30% is applied only to incremental order value. However, each transaction is capped at a maximum of ₹15,000.
- Annual Milestone Charges (AMC): Once a seller crosses ₹20 lakh in annual orders, they are subject to AMC, which is deducted automatically from future transactions. This helps eliminate the burden of upfront payments while keeping compliance simple.
- Support for Land and Sectoral Categories: The GeM Land Revenue Policy is a dedicated framework supporting land-related procurement, allowing better cost tracking and integration of such procurement verticals within the GeM system.
These structural changes aim to simplify seller onboarding, enhance transparency and reduce cost-related entry barriers for startups and MSMEs.
Benefits for MSMEs and Startups: Increased Opportunities, Simplified Processes and Financial Incentives
Startups and MSMEs are often challenged by resource constraints, marketing reach and administrative complexities. The GeM Revenue Policy of 2025 addresses these limitations through an intuitive fee structure that encourages new entrants and promotes financial efficiency.
- Cost-Effective Selling: The transaction fee waiver on initial orders up to ₹10 lakh helps startups and MSMEs test government markets without upfront cost concerns. This is particularly advantageous for early-stage entities working on limited budgets.
- Scalable Fee Framework: With slab-based transaction charges and deferred AMC, startups benefit from an ecosystem that scales costs only as they grow. The model protects their margins during the early phase and rewards consistent performance.
- Ease of Registration and Listing: Companies recognised by DPIIT can access public procurement opportunities more easily through integrated processes for GeM Portal Startup Registration, without the burden of complex eligibility requirements.
- Startup Runway Scheme: Even if they don't fit the conventional requirements, DPIIT-registered startups are particularly permitted to list their creative goods or solutions under the GeM Startup Runway Scheme. For new companies, this program creates a level playing field.
These features demonstrate that the Government e Marketplace for Startups has become an enabling tool for entrepreneurs to directly engage with government buyers.
Impact on Business Growth: How GeM Policy Boosts Competitiveness and Revenue
With more than 70,000 buyer organisations on the platform, GeM Revenue Policy 2025 provides unmatched access to an institutionalised demand base. This not only increases revenue potential for MSMEs but also helps them improve product quality, logistics and delivery capabilities through repeat business.
The key growth outcomes include:
- Expanded Market Reach: Previously inaccessible to many, MSMEs and startups can now connect with buyers in states, ministries, and public sector organisations.
- Fair Competition: GeM enables MSMEs to compete on an equal footing with larger companies by promoting fair competition through transparent bids and established procedures.
- Revenue Visibility: By making sellers' expenses, fees, and prospective income more transparent, the policy framework enables them to more effectively allocate their resources and set their prices.
- Data-Driven Expansion: Sellers can evaluate demand patterns, spot product gaps, and plan inventory in advance by using their GeM dashboards.
Success Stories: Examples of MSMEs and Startups Thriving Under the New Policy
Although specific performance data is still being collected as the new strategy is implemented, the initial results are promising. The revised structure has resulted in improved traction for numerous firms and small-scale manufacturers.
For instance, DPIIT-recognised startups under the GeM Startup Runway Scheme have listed unique, niche solutions such as IoT devices, smart agriculture products and renewable energy systems. The visibility and consistent orders received through GeM have enabled some to transition from prototype to scale.
Similarly, MSMEs in sectors like handloom, electronics and office supplies have leveraged their early success under the transaction-fee waiver to invest in better logistics and packaging, in turn gaining more repeat orders.
Many beneficiaries have cited that the ease of onboarding, real-time payment cycle and relaxed financial norms of the GeM Startup Procurement Policy have allowed them to thrive and expand their operations in a relatively short period.
Future Prospects: Opportunities and Challenges for MSMEs and Startups on GeM
Looking ahead, the new Revenue Policy of GeM 2025 opens up long-term growth pathways for smaller businesses. It aligns with national goals of promoting self-reliance and digital procurement, offering new entrepreneurs an institutionalised route to scale.
- Opportunities:
- Increased procurement from local and innovative startups.
- Greater integration with rural cooperatives and self-help groups.
- Scope for policy-linked incentives for women-owned or green enterprises.
- Increased procurement from local and innovative startups.
- Challenges:
- Need for digital literacy and training among new sellers.
- Managing competition in price-sensitive procurement sectors.
- Requirement of prompt logistics and last-mile delivery solutions.
- Need for digital literacy and training among new sellers.
However, continuous support through training, helpdesks and updates to GeM Land Revenue Policy and sector-specific frameworks is expected to further reduce these gaps.
Conclusion
The GeM Revenue Policy 2025 changes the way India buys things for the government in a big way. By putting in place a fair, clear, and scalable policy, it gives startups and small and medium-sized businesses the power to be important players in government supply chains. With supportive tools like the GeM Portal Startup Registration, Startup Runway Scheme and simplified financial charges, the policy does more than ease business – it catalyses sustainable growth and innovation.
For those looking to engage with public procurement as a startup or MSME, now is the time to explore the full potential of the Government e Marketplace for Startups.
Sources:
https://assets-bg.gem.gov.in/resources/upload/shared_doc/revenue_policy-v1_1723124880.pdf
https://en.wikipedia.org/wiki/Government_e_Marketplace
