Can foreign companies bid on Indian government tenders?

Yes, foreign companies can bid on most Indian government tenders, but they face significant domestic preference provisions under the Make in India policy. The PPP-MII Order gives purchase preference to products meeting minimum local content thresholds, with margins of 20% or more. Foreign companies are more competitive when they manufacture or assemble in India, partner with local firms, or bid on categories where domestic supply is insufficient. Defence procurement has specific categories (Buy Global) that explicitly allow foreign participation.

What is GeM and is it mandatory?

The Government e-Marketplace (GeM) is India's online procurement platform for common-use goods and services. It is mandatory for all central government departments and is being adopted by state governments. GeM offers catalogue-based purchasing (direct buy for items up to INR 25,000 and L1 buy for items up to INR 5 lakh), bid/reverse auctions for larger purchases, and custom bid capabilities. Over 60,000 government buyer organisations and millions of sellers are registered.

What are the payment terms for government contracts?

Standard payment terms for central government contracts are typically 30 days from receipt and acceptance of goods or invoice, whichever is later. In practice, payment delays can be longer, particularly at state and local levels. The Micro, Small and Medium Enterprises Development Act mandates payment to MSMEs within 45 days. GeM has introduced faster payment processing for transactions on its platform.

How does the bid protest process work in India?

Suppliers can challenge procurement decisions through multiple channels. Administrative appeals can be made to the procuring authority. The Central Vigilance Commission (CVC) handles corruption complaints. Courts (High Courts and the Supreme Court) have jurisdiction over procurement disputes. India does not have a specialised procurement tribunal, and court proceedings can be lengthy. Some tenders include provisions for arbitration.

What is the Defence Acquisition Procedure (DAP)?

The DAP 2020 governs all defence capital procurement. It classifies procurements into categories: Buy (Indian - IDDM), Buy (Indian), Buy and Make (Indian), Buy and Make, and Buy (Global). Priority is given to Indian-designed and manufactured products. The DAP includes offset provisions for contracts above INR 2,000 crore, requiring foreign suppliers to invest 30% of contract value in India. The procedure is updated periodically to align with evolving policy objectives.

Country GuidesApril 11, 2026Updated April 11, 202612 min read

How to Find Government Tenders in India

India's public procurement market exceeds $300 billion annually and is growing rapidly alongside the economy. With platforms like the Central Public Procurement Portal (CPPP) and Government e-Marketplace (GeM), India has modernised its procurement infrastructure significantly. This guide covers key portals, regulations, and strategies for winning government contracts in India.

By Tender Radar Team

Procurement Landscape

India operates one of the world's largest and fastest-growing public procurement markets, estimated at over $300 billion annually across central, state, and local government levels. The procurement landscape is complex and decentralised, with central ministries, state governments, public sector undertakings (PSUs), and municipal bodies all conducting their own procurement. India has been undergoing a significant digital transformation of its procurement systems, with the Central Public Procurement Portal (CPPP) and Government e-Marketplace (GeM) leading the shift to electronic tendering. The Make in India initiative and Atmanirbhar Bharat (Self-Reliant India) policies are reshaping procurement with domestic preference provisions.

Key Sectors & Opportunities

Infrastructure & Construction

India is investing massively in roads (Bharatmala), railways (including high-speed rail and station redevelopment), airports (UDAN scheme), ports (Sagarmala), and urban infrastructure. The National Infrastructure Pipeline targets USD 1.4 trillion in infrastructure investment. Ministries of Road Transport, Railways, and Housing are among the largest buyers.

Information Technology & Digital India

The Digital India programme drives procurement of IT systems, cloud services, broadband infrastructure, e-governance platforms, and cybersecurity. NIC, MeitY, and state IT departments are active buyers. India Stack and digital public infrastructure create unique technology opportunities.

Defence & Aerospace

India is the world's largest arms importer transitioning to domestic production under Make in India. The Defence Acquisition Procedure (DAP) 2020 prioritises indigenous manufacturing. Opportunities span aircraft, naval vessels, missiles, electronics, and maintenance. Defence corridors in UP and Tamil Nadu are developing supply chains.

Healthcare & Pharmaceuticals

Government healthcare procurement covers medical equipment, hospital construction, drugs and consumables, and health IT. Ayushman Bharat (National Health Protection Mission) is expanding healthcare access. Central and state health ministries and hospital management societies are key buyers.

Smart Cities & Urban Development

The Smart Cities Mission covers 100 cities with investments in integrated command centres, intelligent transport, water management, waste management, and urban renewal. State urban development departments and Smart City Special Purpose Vehicles (SPVs) manage procurement.

Renewable Energy

India targets 500 GW non-fossil fuel energy capacity by 2030. Solar Energy Corporation of India (SECI), NTPC, and state renewable energy agencies procure solar parks, wind farms, battery storage, and green hydrogen. The sector offers significant volume procurement opportunities.

Tips for Suppliers

Register on CPPP and GeM

Create supplier accounts on both CPPP (eprocure.gov.in) and GeM (gem.gov.in). GeM registration requires an Aadhaar-linked digital identity and GST registration for Indian entities. Foreign suppliers should explore GeM's provisions for overseas sellers or consider registering through an Indian subsidiary. These registrations are essential for accessing the majority of government opportunities.

Understand Make in India Preferences

The Public Procurement (Preference to Make in India) Order provides purchase preference to domestic manufacturers based on local content thresholds. Products are classified into categories with varying minimum local content requirements. Understanding these categories and how they apply to your products is critical for competitive positioning. Consider local manufacturing or assembly to qualify.

Build Relationships with PSUs

Public Sector Undertakings (PSUs) like BHEL, ONGC, NTPC, Indian Railways, and state electricity boards are massive procurement entities. They often have their own vendor registration and prequalification processes. Getting empanelled with target PSUs opens access to ongoing procurement opportunities. Attend vendor meets and registration drives.

Navigate State-Level Procurement

India's 28 states and 8 union territories each have their own procurement rules, portals, and processes. State procurement can be as large as central government procurement in aggregate. Identify your target states, register on their e-procurement portals, and understand state-specific rules and preferences.

Prepare for Earnest Money and Security Deposits

Indian government tenders typically require an Earnest Money Deposit (EMD) of 2-5% of estimated contract value with the bid, and a Performance Security of 5-10% upon award. Ensure your financial planning accounts for these requirements. Some exemptions exist for MSMEs and startups registered on GeM.

Consider Joint Ventures for Large Projects

For major infrastructure and defence contracts, forming a joint venture with an established Indian company can be highly advantageous. JVs help meet local content requirements, provide on-ground execution capability, and bring relationships with government buyers. Choose partners with relevant experience and strong track records.

How to Find Government Tenders in India

Procurement Landscape

Legal Framework

Official Procurement Portals

Central Public Procurement Portal (CPPP)

Government e-Marketplace (GeM)

State e-Procurement Portals

Defence Procurement Portal

Key Sectors & Opportunities

Infrastructure & Construction

Information Technology & Digital India

Defence & Aerospace

Healthcare & Pharmaceuticals

Smart Cities & Urban Development

Renewable Energy

Tips for Suppliers

Register on CPPP and GeM

Understand Make in India Preferences

Build Relationships with PSUs

Navigate State-Level Procurement

Prepare for Earnest Money and Security Deposits

Consider Joint Ventures for Large Projects

Frequently Asked Questions

Automate your tender search in India

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