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

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:

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:

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:

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.