The term “public procurement” pertains to the procedure by which government bodies and state-owned enterprises procure goods and services from private entities. As government organizations wield significant spending power, they present a vast market for startups.
The goal is to simplify the public procurement process for startups, enabling them to tap into another potential market for their products.
DPIIT recognized startups can sell their products and services directly to government entities through the online procurement platform, Government e-Marketplace (GeM). It is a significant opportunity for startups to collaborate with the government on trial orders.
- Manufacturing startups will be exempted from the “prior experience/turnover” criteria by the government, as long as they demonstrate the capability to execute the project according to specifications and have a manufacturing facility in India.
- DPIIT-recognized startups are exempted from submitting Earnest Money Deposit (EMD) or bid security while bidding on government tenders.
Startups need to be recognized by the Department for Promotion of Industry and Internal Trade (DPIIT).