Understanding the Make in India (MII) Order in Public Procurement
Under the Public Procurement (Preference to Make in India) Order issued by the Department for Promotion of Industry and Internal Trade (DPIIT), government tenders give substantial preference to domestic manufacturers. Tenders frequently restrict participation exclusively to Class-1 local suppliers (minimum 50% local content) or grant price preference margins up to 20% to local businesses over non-local competitors.
Obtaining and declaring the correct Make in India Certificate is mandatory for bidding on GeM (Government e-Marketplace) and central/state government tenders. Incorrect calculation of local content or improper self-certification can lead to severe penalties, bid rejection, or vendor debarment. Our specialized advisory ensures your products are accurately categorized and supported by legally robust documentation.
Supplier Categories & Our Advisory Scope
We evaluate your Bill of Materials (BOM) and manufacturing processes to determine your exact statutory bracket under government guidelines:
Class-1 Local Supplier
For goods/services with equal to or more than 50% local content, unlocking priority reservation in restricted tenders.
Class-2 Local Supplier
For goods/services with local content between 20% and 50%, eligible for general procurement preferences.
Local Content Calculation
Detailed breakdown of domestic vs. imported raw material costs, labor, and overheads to determine exact percentages.
CA Certificate & Self-Declaration
Drafting statutory declarations and coordinating with Chartered Accountants for certified local content validation.
Our Step-by-Step MII Guidance Methodology
We follow a rigorous, analytical approach to verify your local content and format your compliance documents:
- Bill of Materials (BOM) Analysis: Reviewing all raw materials, components, sub-assemblies, and imported parts utilized in your finished product.
- Local Value Addition Computation: Calculating the exact domestic value addition percentage as per DPIIT calculation formulas (excluding import duties and foreign components).
- Supplier Classification & Eligibility Check: Determining whether your product qualifies as a Class-1 or Class-2 local supplier for your targeted tenders.
- Format Drafting & CA Endorsement: Preparing the formal self-declaration format and coordinating with Chartered Accountants for formal audit and signature.
- GeM & Tender Upload Assistance: Guiding you on how to correctly upload and link your MII certificate on the GeM portal and during e-procurement bid submissions.
Required Information & Documents
Manufacturing & Costing Records
- Complete Bill of Materials (BOM) with item descriptions, quantities, and unit costs
- Invoices or supplier purchase orders verifying domestic versus imported raw material procurement
- Manufacturing process description and factory location proof in India
Statutory & Entity Documents
- Company incorporation documents, GST registration certificate, and Udyam Registration
- Existing product catalogs, brochures, or tender specifications requiring MII compliance
- Previous tender documents or GeM profile details (if applicable)
Make in India Certificate Guidance Fee
| Advisory Service Package | Comprehensive Scope of MII Guidance | Service Fee |
|---|---|---|
| Make in India (MII) Compliance & Certification Advisory | BOM local content calculation, supplier classification (Class-1/2), statutory self-declaration drafting, and CA certificate coordination | ₹4,999 + GST |
Frequently Asked Questions (FAQs)
1. What is the difference between Class-1 and Class-2 local suppliers?
A Class-1 local supplier has local content equal to or greater than 50%, while a Class-2 local supplier has local content between 20% and 50%. Many government tenders are reserved exclusively for Class-1 suppliers.
2. Is a Chartered Accountant (CA) certificate mandatory for MII?
For tenders above ₹10 crores, a certificate from a statutory auditor or practicing Chartered Accountant is mandatory. For smaller tenders, a duly signed self-declaration on company letterhead is often accepted, though CA verification adds strong credibility.
3. How is local content percentage calculated?
Local content is calculated as the proportion of domestic value added to the total value of the product (excluding net imported content and domestic import duties), expressed as a percentage.
4. Can service providers also obtain MII certification?
Yes, the PPP-MII order applies to both goods and services procured by government departments and public sector undertakings (PSUs), with local content calculated based on domestic resource utilization and personnel costs.
*Note: Document requirements and Service Fee may vary by tender, category and registration type. Tendershala's consultants confirm the exact checklist and service fee that applies to your specific requirement.