Government Eases Procurement Rules to Boost Scientific Research and Innovation In a significant move aimed at empowering research institutions and enhancing the pace of innovation in India, the Central Government has revised the General Financial Rules (GFRs), raising the financial thresholds for procurement of scientific equipment and consumables. This step is expected to greatly benefit researchers, academic institutions, startups, and innovators by simplifying processes and minimizing procedural delays.
Key Revisions in GFRs
Under the updated guidelines, institutions including universities, directors, and vice-chancellors under various ministries and departments can now make purchases outside the Government e-Marketplace (GeM) with enhanced limits:
- Procurement without quotations: Institutions can now procure scientific instruments and consumables worth up to ₹2 lakh without requiring quotations — a significant increase from the earlier limit of ₹1 lakh.
- Purchase committee ceiling raised: Purchase committees are now authorized to approve acquisitions up to ₹25 lakh, more than doubling the previous ceiling of ₹10 lakh.
- Global tender approvals: Vice-chancellors and directors can now approve global tenders up to ₹200 crore, empowering institutions to acquire high-end, specialized equipment from international markets.
Expected Impact
These simplified procurement rules are set to reduce administrative bottlenecks, offering greater autonomy and flexibility to academic and research institutions. This means faster project execution, improved access to advanced tools and technologies, and a stronger push toward innovation in fields ranging from biotechnology to atomic energy.
The revised rules will apply across key departments such as science and technology, space, earth sciences, atomic energy, health research (including ICMR), and more. Notably, prestigious institutions like the Defence Research and Development Organisation (DRDO), the Indian Council of Agricultural Research (ICAR), and their affiliated universities will also benefit from this regulatory reform.
Enabling a Research-Friendly Ecosystem
By aligning procurement processes with the needs of today’s dynamic research environment, the government has taken a proactive step toward enhancing India’s scientific output. This move will likely accelerate the development of cutting-edge research, foster indigenous innovation, and support the growing ecosystem of startups and young scientists in the country. The revision of these financial rules reflects a broader vision of strengthening the nation’s research infrastructure, streamlining governance, and encouraging faster innovation cycles — a critical step as India aims to position itself as a global leader in science and technology.
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