Centre Relaxes Consultancy Tender Rules To Expand Competition, Support Domestic Firms

New Delhi, Aug 14 (KNN) The Centre has revised eligibility and evaluation norms for government consultancy contracts to provide greater opportunities for domestic consulting firms under the Atmanirbhar Bharat initiative.

The Department of Expenditure has relaxed consultancy tender norms covering annual turnover, past experience and minimum payroll requirements. 

Procuring entities have been advised to avoid excessive turnover thresholds and ensure payroll requirements match the manpower needed for each project. 

Ministries have been directed to follow the revised eligibility, qualification and evaluation criteria when issuing consultancy tenders, reported The Mint. 

Revised Norms Aim To Widen Competition

Consultants will be shortlisted based on experience in similar assignments and financial capability. The revised norms could widen competition, benefiting domestic firms while intensifying competition for global consultancies, including the Big Four. 

DVS Advisory Group founder Divakar Vijayasarthy said lower turnover thresholds and a balanced focus on credentials could help capable Indian firms win larger mandates, invest in talent and build global scale. 

Government Review Identifies Restrictive Tender Conditions

The revised framework follows a review of consultancy tenders issued by central government entities through GeM over the past three financial years. 

Officials found that some tenders set turnover requirements five to 10 times the assignment value, potentially limiting competition. Several also prioritised firm-level experience over key personnel qualifications, while some imposed payroll requirements far above the manpower needed for the assignment. 

Move To Boost Domestic Consulting Firms Through GeM

The changes aim to widen participation in government consultancy contracts through GeM, which enables competitive procurement by ministries, departments and public sector entities. 

The move follows the Centre’s September 2025 proposal to facilitate multidisciplinary firms offering accounting, auditing, legal, valuation and management consultancy services. 

India’s management consulting and business advisory market is estimated at USD 9.36 billion in 2026 and projected to exceed USD 17 billion by 2031. 

(KNN Bureau)