The Ministry of Information and Broadcasting (MIB) has amended the Digital Advertisement Policy 2023 to allow eligible MSME entities and startups to participate in government digital advertising campaigns through a separate empanelment mechanism. The move is expected to widen opportunities for smaller agencies and emerging digital firms looking to work on government campaigns across social media and online platforms.

According to a The Storyboard18 report, the amendment was approved on May 8, 2026, and modifies Part E of the Digital Advertisement Policy 2023, which deals with the empanelment of media agencies for digital campaigns. Under the revised framework, the Central Bureau of Communication (CBC) will now be able to create a separate “Base Panel” consisting of eligible micro and small startups as well as MSME entities through a dedicated Request for Proposal (RFP) process.

The newly introduced Base Panel will function alongside the existing Category-I and Category-II media agency structure already defined under the policy. The change is aimed at encouraging broader participation from smaller digital players that may not have previously qualified under the existing eligibility requirements.

As per the revised guidelines, entities applying under the new mechanism must have an average annual turnover between Rs 2 crore and Rs 20 crore. They must also possess either a valid DPIIT Startup recognition certificate or an Udyam registration certificate. Additionally, the entity should have been operational for a minimum period of one year.

The amendment further gives flexibility to CBC to relax certain eligibility norms related to prior experience, scale of operations, and working relationships with social media platforms and digital channels. These conditions will be determined by the Director General or Principal Director General of CBC while issuing the RFP.

Under the financial structure of the revised framework, Base Panel entities will receive rates fixed at 75 per cent of the L-1 rates discovered for Category-II agencies. Their empanelment tenure will also remain aligned with the tenure applicable to Category-I and Category-II agencies under the existing system.

In an advisory issued on May 18, 2026, CBC stated that the Digital Advertisement Policy 2023, originally notified on November 9, 2023, had undergone amendments approved by the Ministry of Information and Broadcasting. The advisory also clarified that the original policy and the ministry’s approval regarding the amendments were being issued together.

The Digital Advertisement Policy 2023 governs empanelment norms and advertising procedures for government campaigns across websites, mobile applications, OTT platforms, digital audio services, social media platforms, and media agencies. Industry observers believe the latest amendment could help smaller digital-first agencies and startups gain access to government advertising opportunities that were earlier dominated by larger agencies.