National, July 5, 2025 — A landmark report titled “Public Procurement: A ₹88,000 Crore Opportunity for India’s Startups”, jointly released by Primus Partners and JITO Jaipur, has spotlighted public procurement as a transformative lever to fuel India’s startup growth. The report was launched during a high-impact event at Bhamashah TechnoHub, Jaipur, featuring top voices from policy, business, and entrepreneurship under the theme: ‘Fueling Future Enterprises: Public Procurement as a Platform for Innovation’.
As India advances toward its $5 trillion economic goal, the report urges a reimagining of the country’s annual ₹88 lakh crore government procurement spend—from a bureaucratic obligation to a strategic growth enabler for over 180,000 DPIIT-registered startups.
“Startups need access, not just capital,” noted M. Ramakrishnan, Managing Director, Primus Partners. “Even a 0.1% allocation of public demand could unlock enormous value—especially for ventures beyond Tier 1 cities.”
Rajasthan’s Breakthrough Model
The report applauds Rajasthan for pioneering reforms through its iStart and e-Bazaar platforms, which have enabled startups to bypass traditional eligibility barriers like minimum turnover or experience. These initiatives have already facilitated over ₹22 crore in direct government work orders to emerging ventures.
“When the government becomes a customer, not just a facilitator, the ecosystem flourishes,” said Amit Purohit, Vice President, Primus Partners.
Key Findings and Impact Metrics:
Based on sectoral analyses and startup surveys across AVGC, IT, AgriTech, EdTech, MedTech, and renewables, the report revealed:
- 76% startups saw improved market access and credibility
- 70% reported increased investor interest
- 88% expanded their teams, some growing over 140%
- Access to working capital improved via better business validation
Policy Recommendations:
To unlock the full potential of public procurement for startups, the report recommends:
- Institutional startup procurement targets under MSME mandates
- Reverse pitch days by government departments
- Seamless onboarding via GeM and e-Bazaar platforms
- Implementation of Section 43B(h) for 45-day payment cycles
Voices from the Ecosystem:
Ravi Nandan Sinha, Director, MSME Business Forum India, emphasized that 25% of government procurement is already reserved for MSMEs, and startups must build awareness, assign dedicated resources, and treat government business as a vertical.
Saloni Jain, Chairperson, JITO Jaipur, highlighted that “These reforms aren’t just enabling startups—they’re laying the foundation for a more inclusive economy.”
The report concludes with a call to action: India needs more startups solving real problems, not just chasing funding. Public procurement, it argues, can be a powerful catalyst to create sustainable, impact-driven enterprises for the next decade.
Submitted by PR Agency
