The Union government has launched an expanded initiative to onboard 500,000 women-led micro and small enterprises onto the Government e-Marketplace (GeM) by March 2027, aiming to secure Rs 25,000 crore in public procurement contracts for female entrepreneurs. The move builds on existing procurement mandates requiring 3% of government purchases from women-owned businesses, a target most ministries have consistently failed to meet.

New Delhi, April 2026 — The Ministry of Commerce and Industry has unveiled a comprehensive market access programme targeting women entrepreneurs across 350 districts, marking the largest single expansion of female participation in government procurement since the GeM portal’s inception in 2016.

Why Is the Government Prioritising Women in Public Procurement?

India’s public procurement market exceeds Rs 6 lakh crore annually, yet women-owned enterprises currently capture less than 1.2% of this spending despite comprising nearly 20% of all MSMEs. The 2022 Public Procurement Policy mandated 3% reservation for women entrepreneurs, but implementation has remained uneven across central ministries and state departments. Commerce Minister Piyush Goyal described the gap as “a structural failure requiring targeted intervention” during a recent parliamentary session. The new initiative deploys dedicated onboarding teams in aspirational districts where women’s enterprise registration remains below national averages.

What Support Will Women Entrepreneurs Receive?

The programme introduces cluster-based facilitation centres offering digital literacy training, GST registration assistance, and product catalogue development for first-time GeM sellers. Financial linkages through MUDRA loans will be streamlined with pre-approved credit lines for verified women vendors. Quality certification costs for handloom, handicraft, and food processing units will be subsidised up to 80% under the scheme.

• Target: 500,000 women-led enterprises onboarded to GeM by March 2027
• Procurement goal: Rs 25,000 crore in contracts for women vendors
• Coverage: 350 districts with dedicated facilitation centres
• Certification subsidy: Up to 80% for quality compliance costs
• Current baseline: Women capture only 1.2% of public procurement

What Challenges Have Hindered Women’s Market Access Previously?

Industry analysts point to documentation requirements, digital platform unfamiliarity, and working capital constraints as persistent barriers. A NITI Aayog study found that 67% of women-led MSMEs operate informally without Udyam registration, rendering them invisible to government buyers. Geographic concentration remains another concern, with 60% of current women GeM vendors located in just five states. The expanded programme specifically targets northeastern states and tribal districts where women’s self-help groups have demonstrated production capacity but lack marketplace connectivity.

What Happens Next?

Implementation will proceed in three phases, with the first 150 districts activated before August 2026. The Department for Promotion of Industry and Internal Trade will publish quarterly compliance dashboards tracking ministry-wise procurement from women vendors. State governments have been directed to replicate the 3% mandate for their own procurement, potentially doubling the addressable market. Success will ultimately depend on whether buying officers face accountability for meeting diversity targets—a enforcement mechanism that remains conspicuously absent from current guidelines.