Empowering India’s Growth Engine – The MSME Sector
India has one of the largest corporate industries, and its economy completely revolves around the Micro, Small, and Medium Enterprises (MSMEs). To foster the growth, competition and dynamism of MSMEs in the public procurement environment, the government in 2025 has implemented a number of new policies and tender perks to assist the MSMEs to grow, compete and succeed in the public procurement environment.
If you’re an MSME owner or startup founder, this blog will help you understand:
- Major MSME initiatives instituted in 2025
- An policies are tender benefits that can be availed to Udyam-registered businesses
- What is the way to use a platform such as GeM and CPPP
- Inaccuracies to be avoided during government tender bidding
What is an MSME? Why Should You Register?
MSMEs, as per the latest classification (2020), are defined based on investment and annual turnover. Registering on the Udyam Portal provides you with a unique MSME certificate that is required to claim benefits in public tenders.
| Type | Investment (₹) | Turnover (₹) |
| Micro | ≤ 1 crore | ≤ 5 crore |
| Small | ≤ 10 crore | ≤ 50 crore |
| Medium | ≤ 50 crore | ≤ 250 crore |
Pro Tip: Udyam Registration is free and mandatory for MSME benefits in 2025 tenders. Get registered today with Licit360
Why MSMEs Should Care About Government Tenders in 2025
The Indian MSME industry accounts for more than 30% of the GDP and is also the largest provider of jobs in the country employing more than 110 million. The Government of India in 2025 has come up with new MSME schemes and increased the benefits on government tenders, to support the ease of doing business, inclusive procurements, and empower small vendors in recognition of the problem.
Top MSME Tender Benefits in 2025
1. EMD Exemption for Udyam-Registered MSMEs
Typically, tender requires a fee payment known as Earnest Money Deposit(EMD). However, MSMEs registered on the Udyam portal are also required to be exempted from paying EMD as per the Rule 170 of General Financial Rules (GFR) 2017.
Benefit:
- Saving of 50 thousand to 10 lakhs of rupees per tender!
- Allows the smaller businesses to compete on a level playing field.
Need help with Udyam registration? Check out our Legal Registration Services
2. Purchase Preference Policy for MSMEs
The Public Procurement Policy for MSMEs (Amended 2023) mandates that:
- 25% of government procurement must be from MSMEs.
- 4% reservation for SC/ST-owned MSMEs.
- 3% reservation for women-led MSMEs.
Benefit:
- Priority access to contracts
- Protection from L1 disadvantage (price matching allowed if within 15% of lowest quote)
Example: If you’re an MSME bidding ₹10.2 lakhs vs L1 at ₹10 lakhs, you may still win with a matching opportunity!
3. GeM Portal Benefits for MSMEs in 2025
The Government eMarketplace (GeM) has become India’s leading online tendering platform. In 2025, MSMEs enjoy:
- 0% seller charges (up to ₹5 crore turnover)
- Auto OEM tagging
- Faster payments under GeM-SAHAY initiative
- Enhanced visibility for Udyam-verified sellers
Want to sell on GeM? Explore our GeM Registration Services
Latest MSME Government Schemes in 2025
Here’s a snapshot of top MSME schemes active in 2025 that can help your business grow and win more tenders:
| Scheme Name | Purpose | Key Benefits |
| CGTMSE (Revised 2025) | Credit guarantee for loans | Collateral-free loans up to ₹5 Cr |
| MSME Champions Scheme | Business consulting, IPR, tech upgrades | Handholding support via portals |
| RAMP Scheme (World Bank-backed) | MSME competitiveness | ₹6,062 Cr funding & skill training |
| MSE-CDP (Cluster Development) | Infrastructure & market access | 80% cost grant for clusters |
| Digital MSME Initiative | Tech adoption & cloud | Subsidy for digital tools/software |
Tender Eligibility Criteria for MSMEs
Before applying for tenders, ensure the following:
- Udyam Certificate is valid and active
- PAN and GST are linked to Udyam
- ITRs for the last 1-2 years (if required)
- Technical and Financial Capacity documents
- Past Work Experience (some tenders)
Not sure if you’re eligible? Speak to a Tender Expert
Common Tendering Mistakes MSMEs Make
Avoid these errors while applying:
- Submitting expired or invalid Udyam certificate
- Not uploading supporting documents
- Ignoring pre-bid meeting updates or corrigendums
- Quoting irrationally low prices (can lead to rejection)
Pro Tip: Use a Tender Checklist before submission to avoid disqualification.
How to Find MSME-Friendly Tenders in 2025
Use these platforms to discover active opportunities:
- GeM Portal (https://gem.gov.in)
- CPPP Portal (https://eprocure.gov.in)
- State e-Procurement Sites (e.g., MP Tenders, UP eProc)
- Tender Aggregators (BidAssist, Tender247)
Most portals allow filtering tenders by:
- MSME-friendly
- EMD Exemption
- Sector (e.g., IT, Construction, Legal, Services)
Documents Required to Claim MSME Tender Benefits
Make sure you have these:
- Udyam Certificate
- PAN Card
- GST Certificate
- MSME Declaration Letter (format available on GeM)
- Audited Financial Statements
- Past Work Orders (if applicable)
How Licit360 Helps MSMEs Win Tenders in 2025
At Licit360, we support small businesses with:
- Udyam Registration & Documentation
- Tender Alerts & Application Assistance
- Bid Preparation & Compliance Support
- GeM Portal Onboarding
- Legal Advisory for MSMEs
Need help getting started? Book a free consultation today
Final Thoughts: Don’t Miss Out on MSME Tender Benefits in 2025
Government tenders are a potential goldmine whether you are a new company, a manufacturer or a service provider, but with the MSME utility, it is even simpler. EMD exemptions, purchase preference and dedicated schemes 2025 is proving to be a game-changer event to Indian MSMEs.
Ready to grow your business through tenders?
Visit Licit360.in for expert guidance, compliance services, and bid support.
