The Government e-Marketplace (GeM) has highlighted a series of reforms aimed at making public procurement more accessible and affordable for micro and small enterprises (MSEs) during an event organised under GeM Samvad 2026 in collaboration with Laghu Udyog Bharati (LUB). The initiative focuses on reducing the cost of participating in government procurement, simplifying onboarding procedures, encouraging digital participation and improving access to working capital for businesses.

The event highlighted several important changes introduced by GeM, including a reduction in transaction charges, higher order-value exemptions, a cap on charges for large orders and lower vendor assessment costs for Original Equipment Manufacturers (OEMs). The requirement for a Caution Money deposit during onboarding has also been discontinued. According to the information shared at the event, nearly 97% of orders on GeM attract no transaction charges, making the platform more affordable for businesses participating in public procurement.

The GeM-LUB partnership has also supported enterprise awareness and digital onboarding through 108 virtual conferences since the partnership was formalised through a Memorandum of Understanding in 2024. In addition, GeM has integrated with all five Trade Receivables Discounting System (TReDS) exchanges, in line with the Union Budget announcement for FY27. This integration, together with GeM SAHAY's collateral-free lending against purchase orders, is expected to help address working capital challenges faced by micro, small and medium enterprises (MSMEs).

These reforms are significant because government procurement can provide businesses with opportunities to sell products and services to public-sector buyers. However, smaller businesses may face financial and procedural challenges when registering on procurement platforms, meeting assessment requirements, participating in tenders and managing the gap between supplying goods and receiving payments. By lowering participation costs and improving access to finance, GeM aims to make government procurement more inclusive for smaller enterprises.

GeM Samvad 2026 Focuses on Inclusive Public Procurement

GeM Samvad 2026 provided a platform to highlight reforms designed to strengthen the participation of micro and small enterprises in government procurement. Organised by Government e-Marketplace in collaboration with Laghu Udyog Bharati, the event focused on improving affordability, simplifying participation and expanding access to public-sector business opportunities.

Public procurement refers to the process through which government departments, ministries, public institutions and other eligible buyers purchase goods and services. Such purchases can cover a wide range of requirements, from everyday office supplies and equipment to industrial products and specialised services.

For smaller enterprises, access to government procurement can offer an opportunity to reach institutional buyers and develop business relationships beyond their traditional customer base. However, participating in procurement systems may involve registration, documentation, product assessment, tender requirements and financial commitments. These requirements can create challenges for businesses with limited resources.

GeM provides a digital marketplace through which eligible government buyers and registered sellers can conduct procurement-related transactions. Its reforms aim to reduce certain costs and simplify processes that may otherwise discourage smaller businesses from participating.

The changes highlighted during GeM Samvad 2026 include a reduction in transaction charges from 0.50% to 0.30% of the order value, an increase in the order-value threshold for transaction-charge exemptions, a lower maximum charge for large orders and substantial reductions in vendor assessment charges for OEMs.

The removal of the Caution Money deposit requirement is another important measure. Businesses onboarding to the platform no longer need to arrange this deposit under the earlier requirement, reducing one financial hurdle associated with registration.

Alongside these cost-related reforms, GeM has worked with Laghu Udyog Bharati to promote awareness and digital onboarding. The partnership's virtual conferences have helped businesses understand the platform and the opportunities available through public procurement.

The broader objective is to make government procurement more accessible to smaller enterprises and strengthen their participation in the formal digital economy.

GeM Reduces Transaction Charges from 0.50% to 0.30%

One of the key reforms highlighted during GeM Samvad 2026 is the reduction in GeM transaction charges from 0.50% to 0.30% of the order value.

Transaction charges are a cost associated with eligible transactions on a marketplace. For businesses that regularly participate in procurement, such charges can affect the overall cost of fulfilling orders and the financial returns from a contract.

Reducing the applicable rate can lower the amount payable on orders where transaction charges are levied. The actual savings depend on the order value and whether the transaction qualifies for an exemption or is subject to the applicable cap.

For example, consider an eligible order worth ₹20 lakh that attracts the percentage-based charge without any exemption or cap applying. At the earlier rate of 0.50%, the charge would be ₹10,000. At the revised rate of 0.30%, it would be ₹6,000. This illustrates a reduction of ₹4,000 on that hypothetical order.

The example is intended to demonstrate the difference between the two rates; actual charges depend on the platform's applicable rules and the treatment of the particular order.

For MSEs, reducing transaction costs can be useful because smaller businesses often operate with limited working capital and must manage multiple expenses while fulfilling contracts. Lower marketplace charges can help reduce one part of the cost of participating in government procurement.

The revised rate may also benefit businesses that handle repeated transactions on the platform. Even modest savings on individual orders can become more meaningful when considered across a larger number of eligible transactions.

However, transaction charges are only one component of the total cost of participating in public procurement. Businesses must also account for manufacturing or sourcing expenses, packaging, transportation, documentation, taxes and other contractual obligations.

The reduction nevertheless represents a direct effort to lower the financial burden associated with eligible GeM transactions.

Orders Up to ₹10 Lakh Exempt from Transaction Charges

GeM has increased the order-value threshold for transaction-charge exemption from ₹5 lakh to ₹10 lakh.

Under the earlier threshold described at the event, orders up to ₹5 lakh were exempt from transaction charges. The revised arrangement extends the exemption to orders valued up to ₹10 lakh.

This change is particularly relevant for smaller contracts and businesses that supply products or services in relatively modest quantities. It allows a wider range of orders to fall within the stated exemption threshold.

Smaller businesses may participate in government procurement through individual orders that are lower in value than large institutional contracts. For such enterprises, eliminating transaction charges on eligible orders can help reduce the cost of participation.

The increase in the exemption threshold may also be useful for suppliers whose typical order values fall between ₹5 lakh and ₹10 lakh. Under the earlier threshold, such orders could attract charges under the applicable rules. With the revised threshold, eligible orders within the new limit are exempt.

For illustration, an eligible order worth ₹8 lakh falls above the earlier ₹5 lakh threshold but below the revised ₹10 lakh threshold. Under the revised arrangement described at GeM Samvad 2026, the order would fall within the transaction-charge exemption limit.

The measure is intended to make smaller transactions more affordable and encourage participation from businesses that may otherwise be concerned about the additional costs of selling through a procurement marketplace.

The practical benefit will depend on the nature of the order and the platform's applicable conditions. Businesses should check the current GeM rules and transaction details when calculating their expected costs.

Transaction Charges Capped at ₹3 Lakh for Orders Above ₹10 Crore

GeM has also reduced the maximum transaction charge applicable to orders above ₹10 crore. The cap has been lowered to ₹3 lakh, compared with the earlier maximum of ₹72.50 lakh.

This change is important for large-value transactions because a percentage-based charge can produce a substantial amount when applied to a high order value. A cap limits the maximum charge payable under the applicable arrangement, reducing the exposure of eligible large transactions to very high charges.

The revised maximum of ₹3 lakh is significantly lower than the previous cap of ₹72.50 lakh. This represents a reduction of ₹69.50 lakh in the maximum stated charge.

The change can be relevant to businesses participating in high-value public procurement, including enterprises that supply equipment, industrial products or other goods under large contracts. It may also help make the financial implications of participating in eligible large orders more predictable.

For smaller enterprises, the direct benefit will depend on whether they participate in transactions above the stated threshold. Not every MSE will handle orders of this size, but the reform forms part of GeM's broader effort to revise its transaction-charge structure.

A lower cap can reduce one component of procurement-related costs for eligible transactions. However, it does not remove the other expenses associated with executing a large contract, such as production, logistics, staffing, quality requirements and working capital.

The transaction-charge changes should therefore be viewed as one part of a wider set of measures intended to improve the affordability of public procurement.

Nearly 97% of GeM Orders Attract No Transaction Charges

According to the information highlighted during GeM Samvad 2026, nearly 97% of orders on GeM attract no transaction charges.

This figure indicates that most orders fall within arrangements where transaction charges are not levied. It is relevant to understanding the reach of the revised charge structure and the extent to which eligible transactions can be conducted without this particular cost.

For businesses, the presence or absence of transaction charges can influence the calculation of contract costs. When evaluating an order, suppliers need to estimate the expenses involved in producing or sourcing the goods, meeting specifications, delivering the order and complying with the applicable contractual requirements.

If an order attracts no transaction charge, the supplier does not need to include that charge in the cost calculation for the transaction. This may help reduce the overall expense associated with participating in eligible procurement activity.

However, the figure does not mean that 97% of businesses pay no costs when using GeM. It refers to orders that attract no transaction charges, not to all expenses involved in procurement. Suppliers may still incur costs related to production, transport, labour, packaging, certification and other obligations.

The distinction is important because transaction charges are only one part of a supplier's overall business expenditure.

The stated share also highlights why the exemption threshold and revised cap matter. By extending exemptions to eligible orders up to ₹10 lakh and reducing the maximum charge on large orders, GeM is seeking to make the platform's transaction-cost structure more accessible across different order values.

For MSEs, a lower-cost procurement environment may improve the attractiveness of participating in government contracts. Actual commercial gains will still depend on order availability, competition, operating costs and the supplier's ability to deliver successfully.

Vendor Assessment Charges for OEMs Reduced by 66–92%

Another significant reform highlighted at the event is the reduction in vendor assessment charges for Original Equipment Manufacturers (OEMs) by 66–92% since January 2024.

OEMs are businesses that manufacture products or equipment, including goods that may be supplied directly or through authorised sales channels. Vendor assessment can form part of the process through which a supplier's credentials, capabilities or products are evaluated under the relevant procurement requirements.

Assessment-related charges can create an additional expense for businesses seeking to establish their eligibility or complete applicable procedures. Reducing these charges can make the process more affordable, particularly for smaller manufacturers.

The reported reduction of 66–92% indicates that vendor assessment charges have been substantially lowered across the relevant categories or circumstances covered by the reform. The precise savings for an individual business would depend on the applicable assessment category and charge.

For an MSE manufacturing equipment or other products, lower assessment costs can reduce the financial burden of meeting the relevant onboarding or assessment requirements. This may be particularly helpful for enterprises that are entering the platform or seeking to expand their participation.

Lower charges may also support manufacturers that need to manage multiple business expenses before they receive revenue from government orders. Reducing upfront and administrative costs can help free up resources for other activities, such as production planning, quality improvement, marketing and delivery preparation.

Nevertheless, lower assessment charges do not mean that businesses are automatically exempt from applicable eligibility, product-quality or compliance requirements. Suppliers must still meet the relevant rules and demonstrate that they can fulfil the obligations associated with their products and contracts.

The reform is intended to reduce the cost of participating in the procurement ecosystem while retaining the applicable processes required by the platform.

Caution Money Deposit Requirement Removed in July 2025

GeM discontinued the Caution Money deposit requirement for onboarding in July 2025, according to the information highlighted during GeM Samvad 2026.

A deposit requirement can create an initial financial hurdle for businesses joining a platform, especially if funds must be set aside before the business has secured orders. For smaller enterprises, even a relatively limited upfront requirement can affect cash availability for inventory, wages, packaging or other operating expenses.

Removing the Caution Money deposit requirement eliminates this particular onboarding-related financial obligation under the revised arrangement.

The change may make registration more accessible for eligible businesses that previously needed to account for the deposit when considering participation. It can also reduce the amount of money that businesses need to allocate specifically to this requirement.

This is relevant to the broader objective of expanding digital onboarding among micro, small and medium enterprises. A simpler and less expensive entry process can make it easier for businesses to explore public procurement opportunities.

However, the removal of the deposit requirement does not mean that all onboarding requirements have been eliminated. Businesses must still comply with the applicable registration procedures, documentation requirements, eligibility conditions and other platform rules.

Likewise, onboarding does not guarantee that a business will receive government orders. Suppliers must compete for suitable opportunities and fulfil the conditions of the relevant procurement process.

The reform should therefore be understood as a reduction in one financial barrier to entry rather than a guarantee of business.

GeM and Laghu Udyog Bharati Partnership Supports Digital Onboarding

The partnership between Government e-Marketplace and Laghu Udyog Bharati is another important component of the initiative.

The collaboration was formalised through a Memorandum of Understanding (MoU) in 2024. Since then, the partnership has facilitated 108 virtual conferences aimed at improving awareness and supporting the digital onboarding of MSMEs.

A Memorandum of Understanding records an understanding between participating organisations regarding cooperation and the activities they intend to undertake. In this case, the partnership provides a framework for helping businesses learn about GeM and the opportunities available through the public procurement platform.

Awareness is an important factor in digital participation. Businesses may be interested in government procurement but may not fully understand the registration process, the platform's features, the relevant requirements or how to identify suitable opportunities.

Virtual conferences can provide a channel for explaining these processes and allowing participants to learn about the platform without necessarily attending in-person events. They can also help extend information to businesses in different locations.

The 108 conferences conducted under the partnership indicate sustained engagement since the MoU was formalised. The initiative has supported efforts to explain GeM's processes and encourage businesses to explore digital procurement.

For MSMEs, this kind of support can be valuable because digital onboarding involves more than simply creating an account. Businesses need to understand how the platform operates, how to present their products or services and how to respond to procurement opportunities.

The partnership complements GeM's financial reforms by addressing awareness and participation. Lower charges may reduce the cost of using a platform, while guidance and onboarding support can help businesses understand how to access it.

Together, these efforts aim to improve the ability of smaller enterprises to participate in government procurement.

Mihir Kumar Highlights Benefits for MSMEs

GeM CEO Mihir Kumar stated that the reforms have helped MSMEs by reducing participation costs, simplifying processes and improving access to finance.

These three areas are closely connected to the challenges faced by smaller enterprises when seeking government business.

Lower participation costs can reduce the expenses associated with eligible transactions and relevant onboarding or assessment processes. For businesses working with limited financial resources, reducing such costs can help preserve funds for day-to-day operations.

Simplified processes can make it easier for enterprises to understand and navigate the requirements involved in participating in public procurement. Clearer procedures and effective digital onboarding support may help reduce administrative difficulties.

Improved access to finance addresses another common business requirement: the availability of funds to fulfil orders and manage operations while waiting for payments. Even when a company wins a contract, it may need to pay suppliers, workers and transport providers before receiving the proceeds from the order.

The reforms highlighted at GeM Samvad 2026 combine measures relating to costs and procedures with initiatives intended to improve access to working capital.

It is important to distinguish between the different benefits. Lower transaction charges reduce a specific procurement-related expense, while access to finance helps businesses manage cash-flow requirements. Neither automatically guarantees profitability or the award of a contract.

The overall objective is to make participation more manageable for eligible MSMEs and support their ability to compete for government business.

GeM Integrates with All Five TReDS Exchanges

An important development highlighted by Additional CEO of GeM Ajit B. Chavan is the integration of GeM with all five Trade Receivables Discounting System (TReDS) exchanges.

The integration was undertaken in line with the Union Budget announcement for FY27. It is intended to strengthen the connection between public procurement and financing options available to MSMEs.

TReDS is a system designed to facilitate the financing of trade receivables, helping eligible businesses obtain funds against amounts due from buyers. Trade receivables arise when a business has supplied goods or services and is entitled to receive payment.

For an MSME, a confirmed receivable can represent money that the business expects to collect in the future. However, the business may need cash before the payment becomes due. This can create a gap between the completion of a supply and the availability of funds for the next production or operating cycle.

Receivables financing can help address this timing issue by enabling eligible businesses to seek financing against their receivables through the applicable mechanism.

The integration of GeM with all five TReDS exchanges is expected to improve the connection between procurement transactions on the marketplace and the relevant receivables-financing ecosystem.

The potential benefit is particularly relevant for MSMEs that supply goods or services to government buyers but need additional working capital to continue operating while awaiting payment.

However, integration does not mean that every supplier or every order automatically qualifies for financing. Eligibility, documentation, buyer participation, financing terms and other applicable conditions will determine whether a business can use the available mechanisms.

The development nevertheless creates an important link between digital procurement and financing infrastructure.

What Is TReDS and Why Does It Matter for MSMEs?

The Trade Receivables Discounting System (TReDS) is designed to help eligible businesses obtain financing against trade receivables.

In a typical transaction, a supplier delivers goods or services to a buyer and raises an invoice. The buyer may be required to pay the invoice at a later date under the agreed terms. During the waiting period, the supplier still needs money to pay for raw materials, wages, utilities, transport and other expenses.

This timing difference can create a working capital challenge. A business may have completed a sale and recorded an amount receivable, but the money may not yet be available in its bank account.

Receivables financing can help eligible suppliers access funds against those receivables, subject to the relevant procedures and terms. It can allow a business to obtain financing without relying exclusively on conventional borrowing arrangements, although the actual financing structure and costs depend on the applicable transaction.

TReDS is relevant to MSMEs because smaller enterprises can be more vulnerable to delayed cash inflows. They may have less financial flexibility than larger companies and may find it difficult to maintain production if payments are delayed.

The integration of GeM with all five TReDS exchanges is intended to improve the connection between procurement activity and receivables financing. For businesses selling through GeM, this may help them explore financing options linked to eligible transactions.

The practical value will depend on whether the supplier, buyer and receivable satisfy the relevant requirements and whether financing is available on suitable terms.

Businesses should compare applicable costs and conditions before deciding whether to use a financing facility. Receivables financing can help manage cash flow, but it remains a financial arrangement that must be assessed according to the enterprise's requirements.

GeM SAHAY Offers Collateral-Free Lending Against Purchase Orders

Alongside TReDS integration, GeM SAHAY is highlighted as a mechanism offering collateral-free lending against purchase orders.

Collateral is an asset pledged to support a loan. For businesses that have limited assets available to offer as security, collateral requirements can make it more difficult to obtain financing.

Collateral-free lending can potentially reduce this particular obstacle for eligible borrowers. GeM SAHAY's stated approach of lending against purchase orders is relevant to suppliers who need funds to fulfil procurement contracts.

A purchase order records a buyer's order for specified goods or services. Once a supplier receives an order, it may need to arrange raw materials, purchase inventory, hire workers, organise production or prepare for delivery. These activities can require money before the supplier receives payment for the completed order.

Access to finance against an eligible purchase order may help the supplier manage some of these expenses. It can support the fulfilment of an order by helping the business obtain working capital at an important stage of the transaction.

The collateral-free feature may be relevant to MSMEs that do not have sufficient assets to meet conventional security requirements. However, businesses should not interpret this as an automatic right to a loan. Lending remains subject to the relevant eligibility checks, lender assessment, terms and conditions.

The cost of borrowing, repayment obligations and the expected cash flow from the order are important considerations. Businesses need to ensure that the financing arrangement is appropriate for their requirements and that they can manage the repayment schedule.

GeM SAHAY and TReDS address different points in the commercial process. Lending against eligible purchase orders may help businesses prepare to fulfil orders, while receivables financing can help eligible suppliers access funds against amounts due after supplying goods or services.

Together, these mechanisms are intended to strengthen the financing options available to MSMEs participating in procurement.

Why Working Capital Is Important for Government Suppliers

Working capital is the money a business needs to meet its short-term operating requirements. It is used to fund activities such as buying inventory, paying employees, meeting utility bills and arranging transport.

For an enterprise supplying goods to a government buyer, the commercial process may involve expenses at several stages. The business may need to purchase materials before production, pay for manufacturing and packaging, arrange delivery and meet contractual requirements before receiving payment.

If the business does not have sufficient funds to cover these expenses, it may struggle to fulfil the order even when the contract represents a valuable business opportunity.

This challenge can be especially significant for MSMEs because their access to financial resources may be more limited. A shortage of working capital can restrict production, delay delivery or prevent the business from accepting additional orders.

The availability of financing linked to purchase orders and trade receivables can help eligible enterprises manage the timing difference between expenditure and payment.

GeM's integration with all five TReDS exchanges, together with GeM SAHAY's collateral-free lending against purchase orders, is intended to address this challenge.

However, access to finance is only one part of effective working capital management. Businesses must also estimate production costs accurately, monitor payment schedules, maintain appropriate inventory levels and manage outstanding receivables.

Financing should be used carefully because borrowing creates repayment obligations and may involve fees or interest. Suppliers need to assess whether the expected revenue and cash flow from a contract can support the associated costs.

The measures highlighted at GeM Samvad 2026 seek to improve access to financial mechanisms that may help MSMEs manage these operating requirements.

How the Reforms May Benefit Different Categories of Enterprises

The reforms announced or highlighted by GeM can affect businesses in different ways depending on their size, sector, order value and stage of participation.

Micro and small enterprises entering public procurement may benefit from the removal of the Caution Money deposit requirement and the wider availability of awareness and digital onboarding support. These measures can reduce certain barriers associated with joining and understanding the platform.

Businesses handling smaller orders may benefit from the revised transaction-charge exemption threshold of ₹10 lakh. Eligible orders within this limit attract no transaction charges under the arrangement described at the event.

Suppliers handling chargeable transactions may benefit from the reduction in the transaction-charge rate from 0.50% to 0.30%. The actual saving depends on the value and treatment of the relevant transaction.

Businesses handling large orders above ₹10 crore may benefit from the lower maximum charge of ₹3 lakh, compared with the earlier cap of ₹72.50 lakh, subject to the applicable rules.

Original Equipment Manufacturers may benefit from the reported 66–92% reduction in vendor assessment charges since January 2024. The specific benefit depends on the applicable assessment category.

Suppliers facing working capital constraints may find the integration with TReDS exchanges and the GeM SAHAY financing mechanism relevant, provided they satisfy the eligibility and other applicable conditions.

These benefits are complementary rather than identical. A business may benefit from one or more reforms depending on its activities, while another enterprise may find different measures more relevant.

The common objective is to reduce avoidable participation costs, improve access to digital procurement and strengthen financing options for eligible enterprises.

Digital Procurement and the Formalisation of MSME Participation

Digital procurement platforms can help bring buyers and sellers together through a common electronic system. For businesses, this can create an additional route to identify public-sector demand and participate in procurement processes.

However, digital access alone does not guarantee that all enterprises can use a platform effectively. Businesses must understand the registration process, the requirements for listing products or services and the procedures for responding to procurement opportunities.

The GeM-LUB partnership's 108 virtual conferences have supported awareness and digital onboarding efforts. Such engagement can help businesses understand the platform and identify the steps needed to participate.

Lower transaction charges, reduced assessment costs and the removal of the Caution Money deposit requirement can complement this support by addressing some of the financial barriers associated with participation.

The integration with TReDS exchanges and the availability of GeM SAHAY financing options add another dimension by connecting procurement with potential working capital solutions.

These initiatives can be relevant to businesses seeking to strengthen their participation in formal commercial networks. They may also help enterprises understand the administrative and financial requirements associated with supplying institutional buyers.

Nevertheless, the ability to benefit from digital procurement depends on more than registration. Businesses need competitive products or services, reliable delivery arrangements, suitable pricing and the capacity to fulfil contractual obligations.

The reforms therefore provide support mechanisms, while individual enterprises remain responsible for evaluating opportunities and managing their operations.

What Businesses Should Consider Before Using GeM

Businesses interested in participating in public procurement should understand the current rules and costs that apply to their activities.

First, suppliers should confirm the registration and onboarding requirements relevant to their business. The removal of the Caution Money deposit requirement does not eliminate other applicable procedures or eligibility conditions.

Second, businesses should understand the transaction-charge structure. The revised rate, exemption threshold and cap may affect the costs associated with eligible orders, but the treatment of a particular transaction should be checked under the current rules.

Third, OEMs should review the applicable vendor assessment requirements and charges. Although charges have reportedly fallen by 66–92% since January 2024, the exact amount depends on the relevant category and process.

Fourth, suppliers should evaluate the full cost of fulfilling a government order. Production, packaging, transportation, labour, taxes, quality requirements and other contractual obligations can influence profitability.

Fifth, businesses experiencing cash-flow pressure should assess whether available financing options are suitable. TReDS-related receivables financing and GeM SAHAY purchase-order lending may provide options for eligible enterprises, but businesses must understand the costs, eligibility requirements and repayment obligations.

Finally, suppliers should use available awareness and onboarding support to understand how the platform works. The GeM-LUB partnership's virtual conferences represent one channel through which businesses have been supported in learning about digital procurement.

Careful planning can help businesses make informed decisions and reduce the risk of accepting contracts that they cannot fulfil profitably or finance effectively.

The Broader Significance of GeM Samvad 2026

The reforms highlighted during GeM Samvad 2026 bring together three important aspects of public procurement: affordability, accessibility and financing.

Affordability is addressed through lower transaction charges, a higher exemption threshold, a reduced cap for large orders and lower vendor assessment charges for OEMs.

Accessibility is supported by the removal of the Caution Money deposit requirement and the GeM-LUB partnership, which has facilitated 108 virtual conferences to promote awareness and digital onboarding.

Financing is addressed through the integration of GeM with all five TReDS exchanges and the use of GeM SAHAY for collateral-free lending against purchase orders, subject to applicable eligibility and terms.

These measures respond to different challenges that enterprises may face when participating in government procurement. Lower fees can reduce transaction-related expenses, onboarding support can help businesses navigate the platform, and financing mechanisms can help manage cash flow.

For MSMEs, the combination is important because the ability to secure an order is only one part of successful participation. A business must also be able to meet the applicable requirements, fund production and delivery, and manage the period before payment is received.

The reforms do not guarantee that every enterprise will win government contracts or obtain financing. Their practical impact will depend on implementation, business readiness, procurement opportunities and the commercial conditions applicable to individual transactions.

Nevertheless, the initiatives highlight an effort to make digital public procurement more accessible and financially manageable for eligible enterprises.

Conclusion: GeM Reforms Aim to Expand Opportunities for MSEs and MSMEs

GeM Samvad 2026 has highlighted a series of reforms intended to reduce the cost of participating in government procurement and improve access for micro and small enterprises.

The reduction in transaction charges from 0.50% to 0.30%, exemption for eligible orders up to ₹10 lakh and lower maximum charge of ₹3 lakh on orders above ₹10 crore represent important changes to the platform's fee structure. Nearly 97% of orders reportedly attract no transaction charges, while vendor assessment charges for OEMs have fallen by 66–92% since January 2024.

The discontinuation of the Caution Money deposit requirement in July 2025 provides further relief by removing one onboarding-related financial obligation. Meanwhile, the partnership between GeM and Laghu Udyog Bharati, formalised through an MoU in 2024, has facilitated 108 virtual conferences to support awareness and digital onboarding of MSMEs.

On the financing side, GeM's integration with all five TReDS exchanges, in line with the Union Budget announcement for FY27, is expected to strengthen access to receivables financing for eligible enterprises. GeM SAHAY's collateral-free lending against purchase orders is also intended to help businesses manage working capital requirements, subject to the relevant conditions.

Together, these measures seek to address several barriers that can prevent smaller businesses from participating effectively in public procurement. Lower costs can improve affordability, digital onboarding support can help enterprises navigate the platform, and financing mechanisms can help bridge cash-flow gaps.

The eventual impact will depend on how businesses use these measures, the opportunities available through procurement and the practical implementation of the relevant arrangements. Suppliers must continue to assess costs, eligibility, contract requirements and financing obligations carefully.

Overall, the GeM Samvad 2026 initiative highlights the government's continued focus on improving the accessibility and affordability of digital public procurement for MSEs and MSMEs. By combining fee-related reforms, onboarding support and financing integration, GeM is seeking to create a more supportive environment for smaller enterprises to explore government business opportunities and strengthen their participation in the formal economy.