GeM, Procurement, Tender, Quotation ! Medisafe International
Procurement India" refers to the vast and structured system through which the Indian government (central, state, and local levels) and public sector undertakings (PSUs) purchase goods, services, and works from suppliers.
This system is massive, touching everything from office supplies and software to infrastructure projects and defense equipment. Understanding it is key for any business looking to sell to the Indian government.
Here is a comprehensive breakdown of the Indian public procurement landscape.
Key Governing Principles
Indian public procurement is guided by a few core principles, established by the General Financial Rules (GFRs) and other policies:
- Transparency: Processes must be open and clear to ensure fair competition.
- Fairness & Equity: All bidders must be treated equally without discrimination.
- Competition: Procurement must encourage competition to get the best value for public money.
- Accountability: Officials are accountable for their decisions.
- Efficiency: Processes should be economical and efficient.
Major Policy Drivers
Several key government policies directly influence procurement:
- Make in India: Preference is given to domestically manufactured goods and local suppliers.
- MSME Promotion: A mandatory share of procurement is reserved for Micro, Small, and Medium Enterprises (MSMEs). They also get benefits like exemption from earnest money deposits and preferential payment terms.
- Gati Shakti: The National Master Plan for multi-modal connectivity influences infrastructure project planning and procurement.
The Key Platforms: GeM vs. e-Tendering -
| Feature | GEM | Central Public Procurement Portal (CPPP / e-Tendering) |
| Purpose | E-commerce platform for routine, low-value purchases | Formal tendering portal for high-value, complex contracts. |
| Process | Simplified, catalog-based, direct purchase, or limited bidding. | Formal, detailed process with a two-envelope system (Technical & Financial bid). |
| Value Threshold | Used for procurements below a certain financial limit (as defined by GFR). | Mandatory for procurements above a certain financial limit (e.g., over ₹25-50 lakhs for goods). |
| Analogy | "Amazon" for the government - quick purchases of standard goods/services. | "Formal RFP Portal" - for complex projects like construction, large-scale IT implementation, etc. |
| Key Links | https://gem.gov.in | https://etenders.gov.in/eprocure/app |
Other Important Procurement Channels
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DGS&D (Directorate General of Supplies and Disposals): Acts as a central purchasing body for common-use goods for various government departments. They establish Rate Contracts (long-term contracts with set prices) which departments can use.
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State-Specific Portals: Many Indian states have their own additional e-procurement portals for state-level tenders (e.g.,
https://eprocure.gov.in/for Karnataka,https://tenders.gov.in/for many states). -
Ministry/PSU-Specific Sites: Large organizations like Railways (
ireps.gov.in), Defense, and Oil PSUs often have their own dedicated procurement websites for their specialized needs.