DPIIT-recognised startups get relaxations in government tenders, including exemption from prior experience and prior turnover requirements and, in many cases, exemption from EMD. These are granted to help new companies compete for public contracts they would otherwise be barred from by legacy eligibility criteria.
A startup recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) can claim relaxations from the two eligibility conditions that most often lock out new firms: minimum prior turnover and minimum years of past experience. Government buyers are directed to relax these for DPIIT-recognised startups, provided the startup can still meet the essential quality and technical specifications of the tender.
The logic is that turnover and past-experience bars are proxies for capability, and they unfairly exclude capable new companies that simply have not existed long enough. By waiving these for recognised startups, the government widens competition and gives innovative firms a genuine path into public procurement, which is a very large market in India.
In addition to eligibility relaxations, startups are frequently exempted from EMD, and can also use a Bid Security Declaration where offered. This reduces the working-capital strain of bidding, which matters especially for early-stage companies bidding across several tenders simultaneously. On GeM, startup benefits are built into the seller profile and applied automatically where the buyer permits.
These relaxations are not automatic waivers of everything. The startup must be validly recognised by DPIIT and must still deliver on the core technical, specification and quality requirements — the buyer is relaxing entry barriers, not accepting substandard capability. Buyers also retain discretion on where relaxations apply, so read each tender to confirm which reliefs it actually grants.
To claim the benefits, keep your DPIIT recognition certificate valid and attach it at bid submission, and ensure your GeM and portal profiles reflect the startup status against the correct product categories. Claiming a turnover or experience exemption without attaching valid DPIIT recognition is a routine reason such claims get rejected during technical evaluation.
BidShakti factors your DPIIT-startup status into every go/no-go, so tenders that look out of reach on turnover or experience are correctly re-scored as winnable once the startup relaxation applies. It surfaces those opportunities you would otherwise filter out, and the bid-pack reminds you to attach your DPIIT recognition certificate so the exemption is granted rather than questioned.
Frequently asked questions
What exemptions do DPIIT startups get in tenders?
Relaxation from prior turnover and prior experience requirements and, in many cases, exemption from EMD, provided quality and technical specs are met.
Are startups exempt from turnover criteria in tenders?
Yes, DPIIT-recognised startups can claim relaxation from minimum prior-turnover conditions, subject to meeting essential technical requirements.
Do startups have to pay EMD?
DPIIT-recognised startups are frequently exempt from EMD and may use a Bid Security Declaration where the tender offers it.
What proof is needed to claim startup benefits?
A valid DPIIT recognition certificate, attached at bid submission and reflected in your GeM/portal profile against the correct categories.
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