Startup benefits on GeM: what DPIIT recognition gets you

Who counts as a startup for GeM

For public procurement, a startup means an entity recognised by DPIIT (Department for Promotion of Industry and Internal Trade) under the Startup India programme. Recognition comes with conditions on age, turnover and the nature of the business, and it is valid only while those conditions are met. A young company without DPIIT recognition does not get startup benefits in bids.

Benefit 1: EMD exemption

DPIIT-recognised startups are generally exempt from paying EMD in GeM bids, as the bid states. Upload the DPIIT certificate where the bid asks for exemption proof, and sign a bid-securing declaration if required.

Benefit 2: relaxation of prior turnover and experience

Government rules allow startups to be exempted from prior turnover and prior experience criteria in public procurement, and many GeM bids carry this exemption. It is shown in the bid's eligibility section. Buyers can decide not to extend it in specific bids, so read every bid rather than assuming.

What is never relaxed

• ✓Technical specifications and quality standards
• ✓Certifications the product or service legally needs (BIS, licences and so on)
• ✓Delivery period, warranty and other contract conditions
• ✓Documents asked in the ATC, other than those replaced by the exemption

Setting up your GeM profile as a startup

• ✓Enter your DPIIT recognition details in the seller profile so the portal can apply the exemption
• ✓Keep the certificate valid and update the profile if recognition lapses
• ✓If you are also an MSE, keep Udyam updated too — some benefits, such as MSE purchase preference, come from MSE status, not startup status
• ✓List your products or services in the right categories with full specifications

How to check a bid before you rely on the exemption

• ✓Open the bid document and find the eligibility table: look for the lines on startup exemption from experience and turnover, and whether they say Yes or No
• ✓Read the EMD section: it states whether startups are exempt and which proof to upload
• ✓Read the ATC (additional terms and conditions): buyers sometimes add conditions here that apply to everyone, startups included
• ✓Check the category and specification: the exemption covers your past record, not your product's fit with the specification
• ✓If anything is unclear, use the pre-bid query or clarification option where the bid offers one, and keep the buyer's answer

Common mistakes startups make

The most frequent problem is assuming the exemption applies to every bid. A bid that says No to startup relaxation means the normal turnover and experience criteria apply in full, and a bid filed on the assumption of exemption is likely to be rejected at technical evaluation. Another common gap is an expired or mismatched certificate: the name and details on the DPIIT certificate should match the GeM seller profile, and the recognition should be valid on the bid end date.

Startups also tend to underestimate what comes after winning. EMD may be exempt, but a performance security (ePBG) is usually still asked of the winning seller within the period the contract states, and delivery, inspection and warranty terms are the same for everyone. Price for the full contract, not just to get past the first round, and plan for the working capital that government payment timelines need.

Startup Runway and innovative products

GeM has run a dedicated initiative, Startup Runway, for DPIIT-recognised startups to offer innovative products and services that may not fit existing categories. Check the current status and process on gem.gov.in if your offering is genuinely new. For most startups, though, the main opportunity is ordinary bids where the exemption lets a new company compete on product and price.

Frequently asked questions

Related guides