The Ministry of Commerce & Industry released data showing significant growth in MSME participation and procurement through the Government e-Marketplace (GeM) platform. Procurement from MSMEs reached ₹2.37 lakh crore in FY 2025-26, representing 47.2% of the total order value of ₹5.02 lakh crore. This continues a five-year trend of substantial MSME procurement, with values growing from ₹59,033 crore (55.4% of total) in FY 2021-22 to the current levels.
As of 30th July 2026, GeM has registered 11,75,001 MSMEs nationwide, with significant concentrations in Karnataka (55,053) and Bengaluru (16,091). The platform also hosts 37,758 startups, 2,17,155 women entrepreneurs, and 3,784 Self-Help Groups across India, with Karnataka contributing 2,772 startups and 10,896 women entrepreneurs, while Bengaluru accounts for 1,951 startups and 3,052 women entrepreneurs.
GeM has implemented advanced AI/ML-based analytical models to detect suspicious procurement patterns, including potential buyer-seller collusion, abnormal pricing, and repeated participation patterns. These tools identify cases of order splitting, suspected collusion based on digital footprints, bidder qualification ratios, and procurement prices versus product median prices. Flagged cases are made accessible to concerned authorities within buyer organizations for review and action.
The platform leverages the Competition Commission of India toolkit to identify suspected cartels based on digital footprints such as IP addresses, bid pricing, and submission timings. An Incident Management framework examines violations including false document submission, fraudulent practices, collusive behavior, and other misconduct, resulting in administrative actions including suspension.
Suspension data shows 55,772 sellers were suspended in FY 2025-26 out of 1,81,035 incidents raised, following 72,902 suspensions from 1,96,793 incidents in FY 2023-24 and 62,091 suspensions from 1,96,803 incidents in FY 2024-25. Primary reasons for suspension include listing products/services in wrong categories or with wrong specifications, unreasonable offer prices, delivery delays, and refusal to supply after contract placement.
GeM has implemented multiple safeguards including a fully online vendor registration process and advanced analytics tools to detect procurement anomalies such as order splitting, suspicious bidding, abnormal pricing, and potential collusion. Anti-competitive behavior or cartel formation is classified as a Severe/Grave deviation under the Incident Management framework, with proven cases attracting suspension of up to 365 days.