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GeM eligibility & MSME relaxations: what you actually qualify for

12 Aug 2025 · 6 min read

If you're an MSME or a DPIIT-recognised startup, government procurement policy gives you real, money-saving advantages — but most first-time bidders don't claim them because they don't know they exist.

Earnest Money Deposit (EMD): Registered Micro & Small Enterprises are exempt from EMD on GeM for tenders up to roughly ₹2 crore, under the MSE procurement policy. That alone can free up lakhs in working capital across multiple bids.

Prior turnover & experience: For tenders valued up to ₹5 crore, prior-turnover and prior-experience criteria are relaxed for MSEs (per the 2020 notification). Startups get similar relaxations under the DPIIT framework.

The catch is that these apply per-tender and depend on the tender document. Our eligibility calculator maps your profile against these rules instantly so you know before you bid.

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