GeM procurement from MSMEs has crossed ₹2.37 lakh crore in FY 2025-26. This marks a steady rise over five years. The Government e-Marketplace continues to strengthen small business participation across India.
GeM Procurement Data Shows Strong MSME Growth
MSME order value through the platform grew from ₹59,033 crore in FY21-22 to ₹2,37,235 crore in FY25-26. Total order value also expanded during this period. MSMEs now contribute nearly half of all procurement value on GeM. The government shared these numbers in a written reply in Rajya Sabha. Minister of State for Commerce and Industry Jitin Prasada gave the update on August 11.
GeM Registration Numbers Rise Across Categories
The platform now hosts 11,75,001 registered MSMEs nationwide. Karnataka alone accounts for 55,053 of these sellers. Bengaluru contributes 16,091 to that state count. Startups on GeM number 37,758, with 2,772 based in Karnataka. Women entrepreneurs registered on the platform total 2,17,155. Self-Help Groups add another 3,784 sellers to the ecosystem. These figures reflect data as on 30th July, 2026.
GeM Deploys AI to Curb Procurement Fraud
GeM now uses AI and machine learning tools to spot suspicious activity. These models detect order splitting and buyer-seller collusion. They also flag abnormal pricing and repeated bidding patterns. The system checks bidder qualification ratios against product median prices. Buyer organisations receive these flagged cases for review. They then take necessary action based on the findings.
GeM also draws on the Competition Commission of India’s toolkit. This helps identify cartels through digital footprints like IP addresses. Bid pricing and submission timings add further evidence. An Incident Management framework handles violations. False documents, fraud, and collusive behaviour fall under this system. Authorities can suspend sellers or apply other penalties.
GeM Suspends Thousands of Sellers for Violations
GeM suspended 55,772 sellers in FY25-26 alone. Incident reports that year totalled 1,81,035. The previous two years saw similar patterns. FY24-25 recorded 62,091 suspensions from 1,96,803 incidents. FY23-24 saw 72,902 suspensions from 1,96,793 incidents.
Common suspension triggers include wrong product listings and unreasonable pricing. Delivery delays and contract refusals also lead to action. GeM classifies cartel formation as a severe violation. Proven cases can result in suspension for up to 365 days.
GeM Strengthens Vendor Verification Safeguards
GeM runs a fully online registration process for vendors. This keeps onboarding simple and transparent. Advanced analytics tools now support this verification step. Anomaly dashboards alert primary buyers instantly. This lets them act on flagged cases without delay.
