Selling to the government is attractive for a startup: large orders, reliable payment cycles and credibility with other buyers. It is also hard. Traditional tenders ask for years of experience, minimum turnover and a deposit that a young company may not be able to afford. The government has set up relaxations and a dedicated programme, GeM Startup Runway, to make this easier. This guide explains what is on offer, what you need and what to watch out for.
Quick facts
- Platform: Government e-Marketplace (GeM), the government’s online procurement portal
- Programme: GeM Startup Runway, listed in the June 2026 Startup India playbook under the Department of Commerce
- Who can use it: DPIIT-recognised startups registered as sellers or service providers on GeM
- Relief: exemption or relaxation from prior turnover, prior experience and Earnest Money Deposit (EMD) requirements
- Needed for registration: DPIIT recognition number, PAN, Aadhaar and the mobile number used for recognition
- Last checked: 26 October 2026 against the Startup India public procurement page and the June 2026 playbook
What Is GeM and What Is Startup Runway?
The Government e-Marketplace is an online platform where central and state government buyers purchase goods and services. The June 2026 Startup India playbook describes GeM Startup Runway as a way for startups to showcase and sell innovative products directly to government buyers by promoting solutions that are unique in concept, design, process or functionality.
According to the playbook, it is meant for DPIIT-recognised startups registered as sellers or service providers on GeM, including startups with products or services in existing GeM categories or in dedicated startup sectors such as AI, robotics, agritech, cleantech, cybersecurity, edtech, health tech, water tech and assistive tech. The playbook also mentions that other innovative entities can be considered.
What Do Startups Get?
The playbook lists these benefits:
- Access to a large base of government buyers across ministries, departments, public sector units and other public entities
- Exemption or relaxation from requirements such as prior turnover, prior experience and Earnest Money Deposit
- Dedicated marketplace visibility for startups and innovative products
- The ability to list innovative products even when standard categories may not exist
The Startup India public procurement page adds that recognised startups get a Startup India badge on GeM to distinguish them from other sellers, and that there are no more restrictive categories, so new and innovative products can be published on the platform.
The Rules Behind the Relaxations
The Startup India procurement page explains that the General Financial Rules (GFR) 2017 give relief to recognised startups. It names Rule 170(i), which provides relaxation from payment of EMD, and Rule 173(i), which relaxes prior experience and turnover requirements. It also states clearly that the General Financial Rules apply only to central government bodies, and that state norms may differ.
That last point matters. A relaxation that exists for a central ministry’s tender does not automatically apply to a state government department or a public sector company. Read each tender document.
What You Need Before Registering
On the procurement page, the identifiers required to register on GeM as a recognised startup are the DPIIT recognition number, PAN, Aadhaar and the mobile number used for recognition. In practice, get these ready first:
- Your DPIIT recognition certificate (see our DPIIT guide)
- Business PAN and bank account details
- A description of your product or service, with specifications and photos if relevant
- Details of your pricing, delivery timelines and warranty
Step by Step: How to Get Started
1. Get DPIIT recognition. Without it, the startup relaxations do not apply.
2. Register as a seller on GeM using the identifiers above. Use the official GeM website only.
3. List your product or service, in an existing category if one fits, or as an innovative product if not. Check the GeM Startup Runway page for the current process.
4. Watch for buyer requirements. Government buyers publish bids and requirements. Read each one for eligibility and documents.
5. Respond with a complete, accurate offer. Missing documents are a common reason for rejection.
6. Deliver and document. Delivery proof and invoices matter for payment.
State-Level Help
The procurement page also lists examples of what some state governments do. For example, it says Haryana exempts startups from tender fees and EMD subject to conditions, Odisha exempts eligible startups and local micro and small enterprises from EMD and relaxes prior experience, and Gujarat tender rules cannot include a prior-experience condition for startups. It also describes Maharashtra work orders of Rs 10-15 lakh for selected startups to prove their concept, and Rajasthan work orders of up to Rs 1 crore through its Challenge for Change platform. Policies change, so use these as pointers and read the current state notice.
Common Mistakes
- Assuming you win orders just by listing. Registration gets you visibility, not orders. You still compete on price, quality and delivery.
- Ignoring tender terms. Relaxations are not the same in every tender. Read the document.
- Weak product description. Buyers decide quickly. Be specific and honest about specifications.
- Using unofficial portals or paying agents who promise guaranteed orders. Use the official GeM site.
- Underpricing to win. A loss-making first order can hurt a young company more than no order.
- Forgetting after-sales support. Government buyers expect warranty and support.
Frequently Asked Questions
Do I need DPIIT recognition to sell on GeM?
The startup relaxations and the Startup Runway programme are described for DPIIT-recognised startups. Check the GeM website for the rules that apply to other sellers.
Are all state tenders open to startups with relaxations?
No. The General Financial Rules apply to central bodies. State governments set their own rules, and some have startup-friendly policies.
Is there a fee to use GeM Startup Runway?
The pages we reviewed do not list a fee for the Startup Runway programme. Check the current GeM terms before registering, and be careful with anyone who charges for registration help.
Where to Go Next
Read our list of DPIIT-recognised startup benefits for the full picture and visit the Startup India guides hub.
Last checked: 26 October 2026 against the Startup India public procurement page and the June 2026 Startup India playbook. This is general information, not legal or financial advice. Procurement rules and portal processes change, so confirm on the official pages.
