The GeM has recorded a total procurement value of ₹5.03 lakh crore in FY 2025‑26, of which ₹2.37 lakh crore (≈47%) went to MSMEs, startups, women entrepreneurs and Self‑Help Groups (SHGs). The Ministry of Commerce & Industry highlighted the growth and the new AI‑driven monitoring mechanisms in a written reply to the Rajya Sabha.
Key Developments (Bullet Points)
- Registered sellers on GeM (All‑India) as of 30 July 2026: 11,75,001 MSMEs, 37,758 startups, 2,17,155 women entrepreneurs and 3,784 SHGs.
- Procurement from MSMEs rose from ₹59,033 cr in FY 21‑22 to ₹2,37,235 cr in FY 25‑26, maintaining a ~47% share of total orders.
- GeM now uses AI/ML models to flag suspicious patterns such as order‑splitting, collusion and abnormal pricing.
- Collaboration with the CCI toolkit helps identify potential cartels based on digital footprints.
- Incident Management framework recorded 55,772 seller suspensions in FY 25‑26, down from 72,902 in FY 23‑24.
- Major reasons for suspension: wrong product category, unreasonable pricing, delivery delays, and refusal to supply after contract award.
Important Facts
GeM’s online vendor registration ensures that every seller undergoes digital verification before listing. Advanced analytics continuously monitor bids for order splitting, price anomalies and repeated participation patterns. Flagged cases appear on the primary buyer’s dashboard for immediate review.
Severe violations, such as proven collusion or cartel formation, are classified as “grave deviation” and can attract suspension for up to 365 days under the Incident Management framework.
Exam Relevance
Understanding GeM is vital for GS III (Economy) as it illustrates how digital platforms can enhance public procurement, promote MSME participation, and curb corruption. The use of AI/ML and collaboration with the CCI reflect policy‑driven governance and regulatory oversight, topics covered in GS II (Polity) and GS IV (Ethics). The statement by Jitin Prasada showcases parliamentary accountability mechanisms.
Way Forward
To deepen impact, GeM could:
- Integrate real‑time price benchmarking against market rates to further curb abnormal pricing.
- Expand training for MSMEs, startups and women entrepreneurs on digital onboarding and compliance.
- Strengthen inter‑agency data sharing with the CCI and other watchdogs for faster cartel detection.
- Introduce graded penalties for repeat offenders to deter chronic non‑compliance.
Continued monitoring and periodic reporting will help assess whether the platform meets its goal of inclusive, transparent procurement.