GeM MSME Procurement and Vendor Registration Statistics
Government e-Marketplace (GeM) achieved ₹2.37 lakh crore in procurement from MSMEs during FY 2025-26, representing 47.2% of the platform's total order value of ₹5.02 lakh crore. This continues the platform's significant growth trajectory from FY 2021-22 when MSME procurement stood at ₹59,033 crore (55.4% share) of total orders worth ₹1.06 lakh crore.
As of 30th July 2026, GeM has registered 11,75,001 MSMEs nationwide, with significant concentration in Karnataka (55,053) and Bengaluru (16,091). The platform also hosts 37,758 startups (2,772 in Karnataka, 1,951 in Bengaluru), 2,17,155 women entrepreneurs (10,896 in Karnataka, 3,052 in Bengaluru), and 3,784 Self-Help Groups (266 in Karnataka, 9 in Bengaluru).
Fraud Detection and Suspension Mechanisms
GeM has deployed AI/ML-based analytical models to identify suspicious procurement patterns including potential buyer-seller collusion, abnormal pricing, and repeated participation patterns. These models detect order splitting, similar 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 (CCI) toolkit to identify suspected cartels based on bidder digital footprints including IP addresses, bid pricing, and submission timings. An Incident Management framework examines violations relating to false documents, fraudulent practices, collusive behavior, and other misconduct.
Suspension Statistics and Reasons
During FY 2025-26, GeM raised 1,81,035 incidents resulting in 55,772 seller suspensions. This follows 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.
Safeguards and Penalties
GeM maintains a fully online vendor registration process and deploys 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.
This information was provided by Minister of State for Ministry of Commerce and Industry, Shri Jitin Prasada, in a written reply to the Rajya Sabha on 11th August 2026.