Gem enters agreement with RXIL and Arteria Technologies on TReDS platform

Government purchasing entities, such as CPSEs, PSUs, and government departments, will now have the ability to fund their payments to Micro, Small, and Medium Enterprises (MSMEs) through the RXIL trading platform, following an agreement between GeM, RXIL, and Arteria Technologies. This step aims...

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2025 September 22 . 12:58 AM

2 min read

Gem Enterprises Agrees on Partnership with Trade Receivables Exchange Platform RXIL and Arteria... — Gem Enterprises Agrees on Partnership with Trade Receivables Exchange Platform RXIL and Arteria Technologies

Gem enters agreement with RXIL and Arteria Technologies on TReDS platform

The Indian government is taking significant steps to support Micro, Small, and Medium Enterprises (MSMEs) by facilitating their access to finance and promoting their participation in procurement processes.

One of the key initiatives is the integration of the Trade Receivables Discounting System (TReDS) with the Government e-Marketplace (GeM), as suggested in the UK Sinha Committee report. This integration will enable Public Sector Undertakings (PSUs) and government departments to carry out procurement without tying up their own funds, while ensuring timely payments to MSMEs.

The Finance Minister announced in the union budget of this year that the turnover of GeM is planned to be increased from the current levels of Rs 50,000 crore to Rs 3 lakh crore. This ambitious goal was first set by Prime Minister Narendra Modi in 2020.

To facilitate this growth, the Ministry of Micro, Small, and Medium Enterprises (MSMEs) has signed a Memorandum of Understanding (MoU) with RXIL, Arteria Technologies, and the TReDS platform. This partnership aims to extend the benefits of TReDS to a larger universe of MSMEs and help achieve the proposed goal of Rs 3 lakh crore throughput for GeM.

Arteria Technologies will deploy FinessArt for GeM to support the Digital India journey and further the cause for the MSME sector. This move is expected to benefit not only MSMEs but also CPSEs, PSUs, and government departments.

As of the Economic Survey 2019-2020, 57,531 MSME sellers and service providers are registered on the GeM portal. Approximately 53% of transactions on the platform are initiated by MSMEs, reflecting their significant role in the economy.

Central PSUs are required to procure at least 25% of their total purchases from MSMEs. According to the latest data, PSUs have already exceeded this threshold, with 28.26% of total procurement coming from MSMEs.

The MoU also allows Central Public Sector Enterprises (CPSEs), PSUs, and government departments to finance their payments to MSMEs through RXIL. This will further boost the liquidity of MSMEs and encourage their growth.

TReDS has already achieved over Rs 15,000 crore worth of throughput across platforms, demonstrating its effectiveness in providing financing solutions to MSMEs.

These initiatives and partnerships are crucial steps towards creating a more inclusive and vibrant MSME sector in India, which is essential for the country's economic growth and development.