How to win government contracts and tenders in India

Winning Government Contracts in India: Navigating Trade Policies, Registrations, and Documentation

The Indian government's annual expenditure on public procurement exceeds ₹40 lakh crore ($480 billion), accounting for around 20–25% of GDP^[5]. Success in securing government contracts depends on understanding India's procurement landscape, trade policies, registration and certification processes, and documentation requirements. This article provides essential, officially sourced and unbiased guidance for businesses navigating India's public contracting environment.

Overview of Public Procurement Landscape

Public procurement in India is governed by transparency, fairness, and accountability principles as outlined under Article 299 of the Indian Constitution^[12]. Procurement operations occur via the Central Public Procurement Portal (CPP) for high-value contracts (above ₹50 lakh) and the Government e-Marketplace (GeM) for contracts up to ₹50 lakh, with cumulative annual transactions exceeding ₹8 lakh crore for Financial Year 2024^[5].

Recent governmental reforms include quotas for micro, small enterprises (MSEs), women entrepreneurs, scheduled castes and tribes (SC/ST), and DPIIT-recognized startups, aiming to diversify and expand inclusive economic growth^[5][13]. India, however, maintains selective openness internationally, opting out of WTO’s Agreement on Government Procurement (GPA), thus retaining flexibility in strategic sectors^[4][15].

Key Trade Policies Affecting Market Access

Domestic Content Requirements

The Domestically Manufactured Iron and Steel Policy mandates minimum value-addition (ranging between 15%–50%) to offer preferences to local manufacturers during the procurement of metals, electronics, and infrastructure components. Similarly, initiatives like the National Solar Mission emphasize domestically sourced materials, reinforcing strategic self-reliance while adhering to international obligations^[9].

Production-Linked Incentive (PLI) Schemes

PLI schemes allocate ₹1.97 lakh crore ($22 billion) across fourteen sectors such as telecom, textiles, and pharmaceuticals. Incentive eligibility depends upon achieving specified incremental production targets, fostering manufacturing capacity augmentation and aligning with India's domestic market demands^[9].

International Agreements and India's WTO Stance

India continues excluding defense, railways, atomic energy, and other sensitive sectors from foreign competition by abstaining from the WTO GPA. Simultaneously, bilateral trade agreements with entities like the EU and ASEAN offer limited reciprocal concessions aimed at balancing domestic economic priorities and international commitments pragmatically^[4][15].

Mandatory Registrations and Certifications

Primary Registration Through GeM Portal

Registration on GeM remains compulsory, requiring documentation such as PAN, Aadhaar, bank details, and product/service listings. Validated profiles on GeM are critical for engaging in everyday tender bidding and providing real-time procurement opportunities, ensuring procedural compliance during bidding^[5][7].

DPIIT Recognition Under Startup India

DPIIT-recognized startups benefit from relaxations in previous turnover, prior experience criteria, and exemption from Earnest Money Deposits (EMD). This recognition significantly lowers entry barriers for startups, facilitating their entry into government tenders^[12][13].

MSME/Udyam Certification Advantages

Udyam registration ensures MSEs access to reserved percentages (up to 25%) of procurement opportunities. This certification necessitates annual updates and submission of accurate financial data to maintain continuous eligibility^[5].

Documentation Standards for Bids

Pre-Qualification Documentation

Bidders are required to submit audited financial statements (balance sheets and profit-loss statements, typically for three recent financial years), certified by a Chartered Accountant authorized by ICAI. Additionally, bidders must provide affidavits concerning any ongoing litigations or criminal proceedings involving senior company officials. Joint ventures and consortiums demand legally vetted documentation including notarized powers of attorney and board resolution approvals for signatory authorization^[14][16].

Technical Documentation

Technical bids must comprehensively address specific requirements outlined in tender documents. Detailed methodologies, project timelines, quality assurance plans, environmental considerations, and client reference letters demonstrating similar past projects’ successful completion are essential. Accurate submission within specified formats ensures acceptance for further evaluation^[17].

Financial Documentation and Commercial Proposals

Financial bids necessitate detailed pricing structures segmented into labor, material, and overhead charges using specific templates provided during tender release. Any deviation from prescribed formats can lead to disqualification, emphasizing accurate preparation aligned strictly to tender instructions^[17].

Strategic Considerations for Success

Winning government tenders in India requires consistent attention to evolving ministry notifications, GeM platform updates, and official announcements. Proactive participation in pre-bid meetings and clarifications enhances understanding and responsiveness. Collaborating through industry associations facilitates knowledge-sharing and competence in benchmarking. Finally, integrity and ethical compliance remain essential to fostering enduring trust, essential for sustained public sector engagement.

[1] https://vocal.media/education/role-of-dipp-registration-in-government-procurement-or-tenders
[2] https://www.biddetail.com/india-tenders
[3] https://economictimes.com/news/economy/foreign-trade/indian-government-seeks-win-win-trade-deal-with-the-us/articleshow/118269873.cms
[4] https://www.cfr.org/article/how-india-disrupts-and-navigates-wto
[5] https://www.tribuneindia.com/news/business/gem-emerges-as-game-changer-in-public-procurement-in-india/
[6] https://org-id.guide/download.csv
[7] https://www.investindia.gov.in/request-for-proposal
[8] https://dea.gov.in/business/tenders-and-auction
[9] https://www.cfr.org/article/indias-industrial-policies-rejecting-old-status-quo-and-creating-new
[10] https://corpbiz.io/gem-registration
[11] https://www.deccanchronicle.com/business/india-us-fta-talks-us-to-push-india-on-trade-patents-data-rules-1864881
[12] https://www.startupindia.gov.in/content/sih/en/public_procurement.html
[13] https://vocal.media/education/benefits-of-having-a-startup-india-certificate-for-businesses
[14] https://epi.gov.in/admin/image/tenders/1740746139_NITRGMETS116.pdf
[15] https://trade.ec.europa.eu/access-to-markets/en/content/government-contracts-outside-eu
[16] https://newmangaloreport.gov.in/sites/default/files/2025-02/TDconcertinawire.pdf
[17] https://mpcb.gov.in/sites/default/files/tenders/RFP_2025_MPCB_1156335_1.pdf
[18] https://living-in.eu/eu-support-services/procurement-support-materials/eu-legal-framework-public-procurement