In a major policy shift aimed at expanding entrepreneurial participation in public sector projects, the Government of India has officially included Limited Liability Partnerships (LLPs) in its procurement preference schemes, previously reserved for micro, small, and medium enterprises (MSMEs) operating under company or proprietorship models. This inclusion, announced by the Ministry of Micro, Small and Medium Enterprises (MSME) in collaboration with the Ministry of Corporate Affairs (MCA), marks a significant step toward providing equal opportunity to LLPs in government tenders, contracts, and supply chains.

As per the new guidelines, LLPs registered as MSMEs through the Udyam Registration portal will now qualify for procurement benefits such as bid security exemption, tender fee waiver, and preference in technical evaluations. These LLPs must meet the standard turnover and investment limits applicable to MSMEs and comply with relevant industry certifications. Additionally, women-led and SC/ST-owned LLPs will receive enhanced preference scores, further promoting inclusive participation in government procurement programs under the Public Procurement Policy for MSEs.

This move is expected to particularly benefit professional service firms, tech startups, manufacturing units, and consulting LLPs that previously struggled to compete against larger corporate entities in public tenders. Policy experts and industry stakeholders have praised the decision, stating that it levels the playing field and formalizes the role of LLPs in India’s public sector economy. The government has also committed to integrating LLP data into the Government e-Marketplace (GeM) portal, ensuring seamless participation in e-tendering processes and boosting visibility for LLP vendors across ministries and public sector undertakings.