Global entities can now bid on Government procurement via GeM portal

The Government e-Marketplace (GeM) has introduced a global tender enquiry (GTE) functionality, allowing foreign entities to participate in government procurement bids. To facilitate this, GeM has incorporated a multi-currency payment system, enabling buyers to select currencies for receiving offers from sellers.

The move is expected to boost competition and provide access to international vendors, particularly in sectors like petroleum and natural gas, where domestic technologies are lacking. Scientific ministries and research departments have also shown interest in global tenders. However, to protect domestic industries, certain conditions apply. Buyers must first explore domestic markets before opting for international bids, and procurement from foreign firms is allowed only above specified thresholds. Purchases below these thresholds require approval from competent authorities.

Foreign suppliers, including those from countries with trade agreements like the UAE and UK, will be classified as Class II suppliers, while domestic firms retain Class I status. Contracts will be awarded to the lowest evaluated Class II bidder if no domestic supplier is available.