Rajasthan’s reforms show how government spending can drive innovation, credibility, and rapid growth for early-stage ventures
National, July 5, 2025: As India advances toward its $5 trillion economy goal, a groundbreaking report by Primus Partners, launched in collaboration with JITO Jaipur, highlights a massive ₹88,000 crore opportunity for startups through public procurement. Released at a high-impact event at Bhamashah TechnoHub in Jaipur, the report—titled “Public Procurement: A ₹88,000 Crore Opportunity for India’s Startups”—argues that reimagining government spending could catalyze startup growth, job creation, and inclusive economic development.
India’s public procurement—amounting to nearly 25% of the country’s GDP—has historically been seen through a bureaucratic lens. Yet, the report emphasizes that even a fractional shift in procurement toward startups can unlock significant market access. For example, a mere 0.01% allocation of the procurement budget—₹888 crore—could empower hundreds of ventures, while a 1% allocation could transform India’s economic landscape.
“The core needs of startups are market access and credibility,” said Mr. M. Ramakrishnan, Managing Director, Primus Partners. “A small shift in buying power can turn unmet needs into engines of jobs, innovation, and econThe report showcases Rajasthan’s pioneering efforts through initiatives like iStart and e-Bazaar, which have eliminated legacy eligibility barriers and awarded over ₹22 crore in direct government work orders to startups. These reforms have helped startups achieve revenue growth up to 3,500%, with average growth around 50%, and workforce expansion exceeding 88%.omic resilience, especially for startups outside India’s major metros.”
The report showcases Rajasthan’s pioneering efforts through initiatives like iStart and e-Bazaar, which have eliminated legacy eligibility barriers and awarded over ₹22 crore in direct government work orders to startups. These reforms have helped startups achieve revenue growth up to 3,500%, with average growth around 50%, and workforce expansion exceeding 88%.
In a thought-provoking panel, Mr. Ravi Nandan Sinha, Director at MSME Business Forum India, urged startups to proactively engage with government procurement opportunities. He emphasized the need for startups to understand processes, dedicate resources to manage government contracts, and leverage Section 43B(h) mandating 45-day payment cycles—critical for maintaining liquidity.
Mr. Amit Purohit, Vice President at Primus Partners, highlighted how Rajasthan’s amended procurement act, including QRate evaluations for startups, is setting a precedent for inclusive procurement. “When government becomes a customer, not just a facilitator, startups thrive,” he said.
Survey findings presented in the report underscore the power of government as a first customer:
76% of startups reported improved market access and credibility
70% saw increased investor interest
Nearly 90% expanded their teams—many doubling or tripling headcount
Improved business validation made working capital easier to secure
Despite Rajasthan’s success, the report points out that national startup participation in procurement remains low due to inconsistent eligibility criteria, complex onboarding, and limited departmental awareness. To bridge this gap, the report recommends:
Institutional targets for startup procurement under MSME mandates
Ministry-led reverse pitch days to connect startups with buyers
Streamlined onboarding via GeM and e-Bazaar platforms
Strict enforcement of timely payments to ease liquidity pressures
“Public procurement holds the key to scaling startups beyond India’s metros, unlocking stability and confidence among investors,” added Purohit. “Rajasthan’s success shows what’s possible when policies align with on-the-ground realities.”
The report concludes with a compelling call to action: India needs startups focused not just on raising funds, but on solving real problems, serving real users, and building lasting value.
About Primus Partners
Primus Partners is a leading advisory firm providing strategic insights across policy, technology, and economic sectors. With 300+ consultants and a strong presence in India, the Middle East, and the US, Primus Partners has delivered impactful projects across Africa, Asia-Pacific, and the Americas.
