India is working on a new startup procurement framework to improve young companies’ access to government demand, Department for Promotion of Industry and Internal Trade Secretary Amardeep Singh Bhatia said on October 27, 2026.

Key Takeaways

  • Existing procurement benefits include relaxations under the General Financial Rules, but startups still face difficulties using them.
  • Officials are working with other government departments on a new framework; no effective date was announced.

What the startup procurement framework would address

Bhatia said the government was working with other agencies to make better use of procurement to give startups early access to demand. He also called for more private initiatives to bring startups into company supply chains.

DPIIT Additional Secretary Ateesh Kumar Singh said some procurement relaxations and agency circulars already make it easier for startups to enter the process. The challenge, he said, is ensuring that startups know what is available and can use those benefits.

Singh said the work with departments covering finance, public enterprises and micro, small and medium enterprises was ongoing. He did not specify the new framework’s provisions or an effective date. No new rule was announced.

Startup awards announced

The officials spoke at a curtain-raiser event for the sixth National Startup Awards. Winning startups in the 20 sectoral categories and two startup-focused special categories will be eligible for 25 lakh rupees per category, subject to the award guidelines.

The student innovator and aspiring entrepreneur award will have a total prize pool of 25 lakh rupees across four subcategories. Singh said India has more than 250,000 startups, with more than half located in tier 3 and smaller towns.

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