GeM MSME Procurement Reaches Rs 2.37 Lakh Crore in FY 2025-26

New Delhi, Aug 12 (KNN) GeM procurement from MSMEs reached Rs 2.37 lakh crore in FY 2025-26, while 11.75 lakh MSMEs, 37,758 startups, 2.17 lakh women entrepreneurs and 3,784 Self-Help Groups (SHGs) were registered on the Government e-Marketplace (GeM) as of July 30, 2026.

The information was provided by Minister of State for Commerce and Industry Jitin Prasada in a written reply to the Rajya Sabha.

According to the data, MSME procurement through GeM increased from Rs 59,033 crore in FY 2021-22 to Rs 2,37,235 crore in FY 2025-26. Total GeM order value stood at Rs 5,02,776 crore in FY 2025-26, with MSME procurement accounted for 0.472 of the total procurement.

As of July 30, 2026, Karnataka had 55,053 registered MSMEs, 2,772 startups, 10,896 women entrepreneurs and 266 SHGs on GeM. Bengaluru accounted for 16,091 MSMEs, 1,951 startups, 3,052 women entrepreneurs and nine SHGs.

GeM has deployed AI and machine-learning based analytical models to identify suspicious procurement patterns, including potential buyer-seller collusion, abnormal pricing, order splitting and repeated participation. Flagged cases are made available to concerned buyer organisations for review and necessary action.

GeM also uses digital indicators such as IP addresses, bid prices and submission timings to identify suspected cartelisation. 

Under its Incident Management framework, violations including false documentation, fraudulent practices and collusive behaviour can result in administrative action, including suspension.

The number of sellers suspended stood at 72,902 in FY 2023-24, 62,091 in FY 2024-25 and 55,772 in FY 2025-26. Major reasons for suspension included incorrect product or service categorisation, unreasonable pricing, delayed delivery and refusal to supply after contract placement.

Anti-competitive behaviour or cartel formation is classified as a severe or grave deviation under the GeM framework, with proven cases attracting suspension of up to 365 days.

(KNN Bureau)