The Government e-Marketplace (GeM) has not received a single bid from a foreign supplier, months after introducing the Global Tender Enquiry (GTE) functionality and a multi-currency payment system on the portal, according to officials familiar with the matter.
Officials said the key reason is that government departments and public sector undertakings (PSUs) have not floated relevant global tenders on the platform that would attract overseas participation. GeM has now started nudging buyers to issue such tenders through the portal.
"There has not been a single foreign bidder yet. For bidders to participate, buyers first need to issue GTEs for products or services where foreign suppliers are eligible. So far, no such GTE has been floated on GeM," an official aware of the development said.
GeM serves as the government's online procurement platform for common-use goods and services purchased by ministries, departments, organisations and PSUs. The portal introduced the GTE functionality in February to facilitate the onboarding of foreign suppliers. In April, GeM also rolled out a multi-currency payment system, along with safeguards aimed at ensuring that domestic industry interests are not adversely affected.
Officials pointed to two major challenges in attracting foreign participation. First, India's procurement framework continues to provide preference to domestic suppliers. Second, the Central Public Procurement Portal (CPPP) remains an active avenue for foreign bidders.
"We have to ensure that bidders gradually move to GeM. But the first step is getting buyers to issue GTEs for products where overseas participation is required," another official said. Opening government procurement to foreign suppliers has gained significance following India's free trade agreements with the UAE and the UK. Under the India-UAE trade pact and the proposed agreement with the UK, companies from these countries can participate in India's public procurement process.
While GeM allows suppliers from all countries to bid, foreign firms—including those from the UK—will be classified as Class-II suppliers and will not enjoy the Class-I supplier status reserved for domestic companies. In addition, foreign participation will remain subject to prescribed value thresholds.