Ministry of Commerce & Industry
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GeM Strengthens Participation of MSMEs, Startups, Women Entrepreneurs and SHGs

MSME Procurement through GeM Reaches ₹2.37 Lakh Crore in FY 2025–26

Posted On: 11 AUG 2026 6:39PM by PIB Delhi

The number of MSMEs, start-ups, women entrepreneurs and Self-Help Groups (SHGs) registered on the Government e-Marketplace (GeM), category-wise, as on 30th July, 2026, is as below:

Seller Group

All India

Karnataka

Bengaluru

MSMEs

11,75,001

55,053

16,091

Startups

37,758

2,772

1,951

Women Entrepreneurs

2,17,155

10,896

3,052

SHGs

3,784

266

09

 

Yes, procurement from MSMEs through GeM has increased during the last five years. The details of procurement from MSMEs through GeM during the last five financial years are as under:

FY

Total Order Value (₹ in Cr)

MSME Order Value (₹ in Cr)

Proportion of Procurement

FY21-22

1,06,597

59,033

0.554

FY22-23

2,01,317

97,332

0.483

FY23-24

4,03,569

1,90,485

0.472

FY24-25

5,41,602

1,95,976

0.362

FY25-26

5,02,776

2,37,235

0.472

 

GeM has started utilising AI/ML based analytical models to identify suspicious procurement patterns, including potential buyer-seller collusion, abnormal pricing and repeated participation patterns. These models help in identifying cases pertaining to Order Splitting, suspected Buyer Seller Collusion based on the similar digital footprints, Bidder's qualification ratio, procurement prices vis-a-vis product median prices etc. The cases flagged through these analytical tools are made accessible to the concerned authorities within the buyer organizations for further review and necessary action.

GeM tries to leverage upon the Competition Commission of India (CCI) toolkit to identify any suspected cartels, based on the bidder's digital footprints, like IP address, bid pricing, submission timings etc. GeM has established an Incident Management framework under which violations relating to submission of false documents, fraudulent practices, collusive behaviour and other misconduct are examined and appropriate administrative action, including suspension, and other measures as per GeM policies, are regularly taken.

The number of sellers suspended during the last three financial years and are as under:

FY

Incident Raised

Seller Suspended

2023-24

1,96,793

72,902

2024-25

1,96,803

62,091

2025-26

1,81,035

55,772


The main reasons for suspension include:

    • Listing the products/services in wrong category or with wrong specifications.
    • Unreasonable offer price
    • Delay in Delivery as per contract
    • Refuses to supply products/services after placement of contract.

GeM has implemented multiple safeguards to strengthen vendor verification and procurement integrity, including the following:

    • GeM has a fully online vendor registration process.
    • GeM has deployed advanced analytics tools to detect procurement anomalies such as order splitting, suspicious bidding, abnormal pricing and potential collusion, with flagged cases reflected on primary buyer's dashboards for action.

Anti-competitive behaviour or cartel formation is classified as a Severe/Grave deviation under GeM's Incident Management framework, with proven cases attracting suspension of up to 365 days.

This information was given by Minister of State for Ministry of Commerce and Industry, Shri Jitin Prasada in a written reply in Rajya Sabha today.

***

Abhishek Dayal/Shabbir Azad/Anushka Pandey


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