Indian Economy News

GeM Strengthens Participation of MSMEs, Startups, Women Entrepreneurs and SHGs

Government e Marketplace (GeM) is strengthening participation of Micro, Small and Medium Enterprises (MSMEs), startups, women entrepreneurs and Self-Help Groups (SHGs) in public procurement, with 11.75 lakh MSMEs, 37,758 startups, 2.17 lakh women entrepreneurs and 3,784 SHGs registered on the platform as of July 30, 2026. Procurement from MSMEs through GeM reached Rs. 2.37 lakh crore (US$ 26.84 billion) in FY2025-26, increasing from Rs. 59,033 crores (US$ 7.92 billion) in FY2021-22. The platform recorded total order value of Rs. 5.03 lakh crore (US$ 56.92 billion) in FY2025-26, with MSMEs accounting for 47.2% of procurement. The expansion of MSME participation through GeM is providing smaller enterprises and emerging businesses with greater access to government procurement opportunities across the country. 

GeM is also strengthening procurement transparency and integrity through Artificial Intelligence and Machine Learning-based analytical models that identify suspicious procurement patterns, including potential buyer-seller collusion, abnormal pricing, order splitting and repeated participation patterns. The platform uses digital footprints such as Internet Protocol addresses, bid pricing and submission timings to identify suspected cartels and other anti-competitive practices, while flagged cases are referred to concerned buyer organisations for further action. During FY2025-26, 1,81,035 incidents were raised and 55,772 sellers were suspended, with violations including incorrect product categorisation, unreasonable pricing, delivery delays and refusal to fulfil contracts. GeM has also established an Incident Management framework under which proven anti-competitive behaviour or cartel formation can attract suspension of up to 365 days. These measures are expected to strengthen vendor verification, procurement integrity and confidence in India’s digital public procurement ecosystem while enabling wider participation of MSMEs and other emerging seller groups.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.