Government Amends Digital Ad Policy To Include Startups And MSMEs

Ministry of Information and Broadcasting has approved amendments to the Digital Advertisement Policy 2023, allowing eligible startups and MSME entities to participate in government digital advertising campaigns through a separate empanelment framework.

The amendment, approved on May 8, 2026, modifies Part E of the Digital Advertisement Policy 2023 related to the empanelment of media agencies for digital campaigns.

Under the revised provisions, the Central Bureau of Communication (CBC) will be allowed to create a separate “Base Panel” consisting of eligible micro and small startups as well as MSME entities for the execution of digital campaigns.

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Startups Gain Ad Access:

According to the ministry, the panel may be formed through an appropriate Request for Proposal (RFP) process with approval from the Director General or Principal Director General of CBC.

The Base Panel will operate alongside the existing Category-I and Category-II agency structure already defined under the Digital Advertisement Policy.

The revised framework allows empanelled entities to participate in campaigns across digital and social media platforms, channels and online handles linked to government advertising initiatives.

According to the amendment, eligible entities must have an average annual turnover between ₹2 crore and ₹20 crore and must possess either valid DPIIT Startup recognition or an Udyam certificate.

The entity must also have been operational for at least one year.

The amendment further states that the RFP may include relaxed eligibility conditions related to prior work experience, operational scale and working relationships with digital platforms or social media channels, depending on decisions taken by CBC leadership.

Under the new framework, entities empanelled under the Base Panel will receive rates pegged at 75% of the L-1 rates discovered for Category-II agencies.

The tenure of empanelment for Base Panel entities will remain aligned with the tenure applicable to existing Category-I and Category-II agencies.

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Policy Expansion Approved:

In an advisory issued on May 18, 2026, the CBC said the original Digital Advertisement Policy 2023 had first been notified on November 9, 2023, and that the latest amendments were approved by the Ministry of Information and Broadcasting.

The broader policy governs empanelment norms and engagement frameworks for government advertising across digital platforms including websites, mobile applications, OTT platforms, digital audio platforms, social media platforms and media agencies.

The move is expected to increase participation from smaller startups and MSME entities in government digital advertising campaigns by creating a more accessible framework with comparatively relaxed eligibility requirements.

For the digital advertising industry, the amendment reflects the government’s broader push toward expanding opportunities for emerging agencies and startups within India’s growing digital communications ecosystem.