Uttar Pradesh Tops Digital Procurement with ₹65,227 Cr Orders on GeM

Uttar Pradesh has emerged as a national leader in digital public procurement, having recorded a staggering ₹65,227.68 crore in orders through the Government e-Marketplace (GeM) from FY 2020–21 to FY 2024–25. Applauding the achievement, Union Minister Piyush Goyal hailed the state as a model for transparency and efficiency in e-governance, citing its 100% adoption of GeM and over 72 lakh orders worth ₹5.43 lakh crore processed in FY 2024–25 alone.

Why in News?

Uttar Pradesh’s cumulative digital procurement via GeM crossed ₹65,000 crore over five years. Union Minister Piyush Goyal praised the state’s transparent governance and public procurement leadership. The state’s procurement reform in November 2024 enabled full adoption of GeM across departments.

Background

• GeM (Government e-Marketplace): A national digital platform launched in 2016 for procurement of goods and services by government organizations to enhance transparency, efficiency, and inclusiveness.
• Offers 11,000+ product categories and 330+ service categories.
• Has processed over 2.9 crore orders worth ₹14 lakh crore nationally till FY 2024–25.

Uttar Pradesh’s Procurement Journey (FY 2020–25):

Financial Year Procurement Value (₹ Cr)

• 2020–21/4,622.16
• 2021–22/11,286.29
• 2022–23/12,242.48
• 2023–24/20,248.00
• 2024–25/16,828.75
• Total/₹65,227.68
• Urban Development Department: Top spender with ₹11,588.28 crore
• Health & Family Welfare: ₹9,257.14 crore
• IT & Electronics: ₹8,241.60 crore

Other key contributors

• Medical Education: ₹4,589.52 crore
• Home Department: ₹4,116.80 crore
• Energy: ₹2,515.87 crore
• Basic Education, Transport, Higher Education, and I&PR also among top 10

Reforms & Recognition

• In November 2024, UP aligned its procurement rules with the General Financial Rules (GFR) 2017 and GeM’s General Terms and Conditions.
• Enabled 100% departmental adoption of GeM.
• Boosted procurement transparency, fair competition, and small enterprise participation.
• Union Minister Piyush Goyal credited this digital leap as a model of Digital India’s success.

Significance

• National recognition for e-Governance and procurement transparency.
• Promotes MSMEs, enhances accountability, and strengthens fiscal efficiency.
• Sets a precedent for other states to follow PM Modi’s vision of a “one-stop digital marketplace”.