The suggestions from two groups of secretaries to the prime minister in January 2016 are where the Government e-Marketplace got its start. Along with restructuring DGS&D, they suggested creating a specific e-market for the many commodities and services that the government or PSUs buy or sell. The Finance Minister subsequently announced the creation of a technology-driven platform to facilitate the procurement of goods and services by various Ministries and agencies of the Government in his Budget Speech for FY 2016–17.

GeM portal has been established by DGS&D with technical assistance from National eGovernance Division (Ministry of Electronics and Information Technology) for the procurement of both goods and services. The Minister of Commerce and Industry debuted the portal on August 9, 2016. By making the required adjustments to government regulations, general financial rules have approved procurement on GeM. The GeM POC web currently offers more than 7400 products in around 150 different product categories, along with the option to hire a transport service. Through GeM, transactions totaling more than Rs 140 Crore have already been executed.

GeM is an entirely digital, cashless, system-driven marketplace that makes it possible to buy everyday goods and services with little to no human interaction.