Research on Open AI, Deep Research. Updated 27 Feb 25. Thinking time : About 19.5 mins

Purpose:

This document explains how the Indian government—through ministries, departments, and state agencies—procures goods and services via various tendering procedures. It highlights central guidelines, key terms, platforms (like GeM, PPP portals, and state e-tender portals), and includes data on MSMEs, blacklisting, surety bonds, and more. It is intended as a training resource and a reference tool for strategic discussions, especially on how surety bonds can add value in tendering contexts.

We explore:

• Public Procurement Basics and Glossary
• Tendering Platforms (GeM, PPP, major state portals)
• Tender Process Stages and Key Timelines
• Key Documents (Indemnity, Guarantee Forms, etc.)
• GeM Workflow (buyer and seller perspective)
• Government Procurement Decision-Making
• Incentives and Schemes for Different Sectors
• Financial Services (OCEN, GeM Sahay, ULI, etc.)
• Challenges and Future Outlook
• Surety Bonds in Tendering

Part 1: Basics of Public Procurement and Tendering

1.1 Public Procurement: An Overview

Public Procurement is how government agencies buy goods, services, and works. Estimates suggest public procurement in India represents 15–20% of its GDP (World Bank estimates). This scale makes it critical for driving economic growth, promoting social objectives (like SME development), and delivering public infrastructure. The guiding principles are:

• Transparency: Ensuring fair competition and clarity in awarding contracts.