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Plain-language definitions of every Small Business & MSME Programs term that shows up in government tender work.
The mandatory target requiring central government ministries and PSUs to procure at least 25% of their annual value from micro and small enterprises.
Read definitionThe sub-target requiring at least 3% of annual government procurement to go to MSEs owned and managed by women entrepreneurs.
Read definitionThe sub-target within the 25% MSME reservation requiring at least 4% of annual procurement to go to MSEs owned by Scheduled Caste or Scheduled Tribe entrepreneurs.
Read definitionThe policy framework giving Indian manufacturers price and purchase advantages over importers in government procurement.
Read definitionOfficial recognition by DPIIT that qualifies a startup for procurement exemptions, tax benefits, and government scheme access.
Read definitionThe entitlement of Udyam-registered micro and small enterprises to bid in government tenders without paying the Earnest Money Deposit required of other bidders.
Read definitionThe minimum percentage of domestic value a product must contain for a bidder to qualify for Make in India purchase preference.
Read definitionA supplier whose goods have 50% or more domestic value content, entitled to the highest purchase preference in government procurement.
Read definitionA supplier whose goods have 20-49% domestic value content, with limited purchase preference over non-local suppliers.
Read definitionThe percentage price gap within which a preferred supplier (MSME or local) may match the L1 bid and win the government order.
Read definitionThe subset of MSMEs comprising only micro and small enterprises, which are the specific beneficiaries of the 25% procurement reservation and related procurement preferences.
Read definitionBusinesses classified as micro, small, or medium enterprises based on investment and turnover thresholds, entitled to procurement preferences and exemptions in Indian government tenders.
Read definitionThe Government of India policy mandating that central ministries and PSUs procure at least 25% of annual purchases from micro and small enterprises, with sub-targets for SC/ST and women-owned MSEs.
Read definitionA Government of India enterprise under MoMSME that supports small businesses through credit, marketing, and procurement facilitation.
Read definitionFormal enrollment with NSIC under the Single Point Registration Scheme that grants EMD and tender fee exemptions to MSEs.
Read definitionThe rule allowing an MSME quoting within 15% of the lowest bid to match L1 price and win the government order.
Read definitionA policy giving registered MSMEs priority in government procurement up to defined monetary thresholds.
Read definitionA supplier's own declaration of its product's domestic content percentage, used to claim Make in India purchase preference.
Read definitionNSIC's scheme that gives MSEs a single registration enabling EMD exemption and purchase preference across all central government buyers.
Read definitionThe waiver allowing DPIIT-recognised startups to bid on government tenders without the prior work experience normally required.
Read definitionThe waiver allowing DPIIT-recognised startups to bid on government tenders without meeting the minimum annual turnover requirement.
Read definitionGovernment policy allowing DPIIT-recognised startups to bid on public tenders without prior experience or turnover requirements.
Read definitionThe entitlement of Udyam-registered micro and small enterprises to access government tender documents at no charge, waiving the tender fee that other bidders must pay.
Read definitionThe official government-issued certificate confirming an enterprise's MSME registration and classification, required to claim procurement preferences and exemptions.
Read definitionThe official online registration process for MSMEs on the Udyam portal, which produces the Udyam Certificate required to claim procurement preferences.
Read definitionSee how Bid India turns these government tender terms into pipeline. Explore the platform or book a 15-minute demo.
