By Global Consultants Review Team ,
India’s Finance Ministry has advised government departments to avoid unnecessarily restrictive eligibility conditions in consultancy tenders, a move that could give smaller and specialised consulting firms greater opportunities to compete for public-sector assignments.
The Department of Expenditure has raised concerns over high turnover requirements, excessive emphasis on a consulting firm's overall experience and minimum staff requirements that may be significantly higher than what is actually needed for a project.
The guidance aims to ensure that eligibility requirements are proportionate to the size, complexity and actual needs of each consultancy assignment. It also encourages government departments to consider the relevant experience and qualifications of proposed key personnel when evaluating consulting firms.
The guidance follows a review of consultancy tenders issued through the Government e-Marketplace (GeM) over the past three financial years. The department has asked procuring entities to ensure that qualification requirements are proportionate to the size and requirements of individual assignments.
The guidance also encourages government departments to give appropriate consideration to the qualifications and experience of proposed key personnel instead of relying excessively on the size or overall corporate experience of a consulting firm.
This could make government consultancy opportunities more accessible to small, mid-sized and specialised Indian consulting firms with relevant expertise.
“This office memorandum is a pivotal, pro-competition reform in the way the Government of India engages with advisors.” - Suraj Nangia, Founder and Head of Government & Public Sector Advisory at Nangia Global
The Finance Ministry's guidance addresses requirements that can sometimes prevent smaller firms from qualifying for government projects despite having specialists with relevant experience.
The department has particularly highlighted the need to avoid excessive minimum payroll requirements when the actual consultancy assignment requires a smaller project team. It has also cautioned against setting disproportionately high turnover thresholds that could restrict competition.
The move could encourage consulting firms to compete more on specialised expertise, relevant experience and delivery capabilities rather than company size alone.
“After that, it is sheer delivery capability which should help firms stand out and grow on their own merit.” - Kiran Kothekar, Co-Founder & Director of Vector Consulting Group
The guidance reiterates principles contained in the Manual for Procurement of Consultancy Services, Second Edition, 2025, rather than creating an entirely new consultancy procurement framework.
For India's consulting industry, however, the development could have a meaningful impact. Smaller and specialised firms may find it easier to participate in government tenders when eligibility conditions are aligned with the actual requirements of a project.
For government departments, wider participation could provide access to a broader pool of sector specialists and potentially increase competition among bidders.
The move is therefore expected to draw attention across India's consulting sector, particularly among homegrown consulting firms, boutique advisory companies and specialised professional-services providers seeking opportunities in government projects.
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