Make in India Certificate (Local Content Certificate for Tenders)
When a government tender asks for a “Make in India certificate”, it means proof of local content under the Public Procurement (Preference to Make in India) Order, 2017. You self-certify as a Class-I or Class-II local supplier, and above ₹10 crore you need an auditor’s or practising CA’s certificate. We work out your local content and prepare the paperwork.
What it is
There is no single “Make in India certificate” issued by a government office. What buyers mean is a local content declaration under the Public Procurement (Preference to Make in India) Order, 2017, issued by the Department for Promotion of Industry and Internal Trade (DPIIT) and revised in September 2020. It gives preference in government purchases to goods, services and works with enough Indian value addition.
Under the Order, local content is the total value of the item (excluding net domestic indirect taxes) minus the value of imported content, as a percentage. A Class-I local supplier has local content of 50% or more. A Class-II local supplier has more than 20% but less than 50%. At 20% or below, you are a non-local supplier. Nodal ministries can prescribe higher percentages for specific items.
Who it applies to
Suppliers to ministries and PSUs
Manufacturers, traders and service providers bidding in tenders of central ministries, departments and other procuring entities covered by the Order. Picture a Faridabad fabricator quoting to a PSU: the steel is Indian, but the motors are imported. The tender still wants one clean percentage.
Sellers on GeM
Products listed on GeM must show their country of origin, and local content matters when bids are evaluated under the Order.
Contractors and service firms
The Order also covers services and works, so civil, electrical, IT and facility management contractors declare local content too.
Why it matters
Purchase preference
A Class-I local supplier whose quote is within the margin of purchase preference, up to 20%, can be offered the contract at the L1 price, depending on how the tender is structured.
Eligibility to bid at all
In procurements below ₹200 crore without a global tender enquiry, only Class-I and Class-II local suppliers are eligible. A non-local supplier cannot bid.
Protection from disqualification
A local content figure backed by workings survives a complaint. A guess does not.
Documents required
About the bidder
- Incorporation or registration certificate, PAN and GSTIN
- Factory or service location details
- Udyam registration, if you are an MSE
Cost data for the item
- Bill of materials for the product offered
- Purchase invoices for raw materials and components
- Bills of entry for imported inputs
- Labour, overhead and conversion cost records
Tender documents
- Tender or RFP with the local content clause
- Prescribed format for the self-certificate, if any
- Item-wise minimum local content set by the nodal ministry, if notified
How it works
Read the tender’s local content clause first
We check which class the tender demands, whether a nodal ministry has set a higher percentage, and the format of the certificate.
Work out your local content percentage
We take the item’s value, excluding net domestic indirect taxes, and subtract the value of imported content, using your bill of materials and import documents. In practice, one imported component on the bill of materials can pull a product from Class-I to Class-II.
Draft the self-certificate
The self-certificate states the percentage of local content and the locations where the local value addition is made, as paragraph 9 of the Order requires.
Line up the auditor’s certificate early
For procurements above ₹10 crore, a company needs a certificate from its statutory auditor or cost auditor; other bidders need one from a practising cost accountant or practising chartered accountant.
Class-I, Class-II and non-local at a glance
| Class-I local supplier | Class-II local supplier | Non-local supplier | |
|---|---|---|---|
| Local content | 50% or more | More than 20%, less than 50% | 20% or less |
| Purchase preference | Yes | No | No |
| Eligible below ₹200 crore without global tender | Yes | Yes | No |
These are the default thresholds. Always check the tender, because a nodal ministry can raise them for its items.
Timelines
With the bid
The self-certificate goes in with the bid. Start the calculation the day the tender is published. A closing-day scramble produces guesses.
For each tender
Local content is declared item by item, bid by bid. Switch a supplier and the percentage can move. Re-check it before every new bid.
When asked for verification
Procuring entities can verify the declaration, sometimes months after award. Keep the workings and supporting invoices ready.
What happens if the declaration is wrong
Breach of the Code of Integrity
Under paragraph 9 of the Order, a false declaration is a breach of the Code of Integrity under the General Financial Rules.
Debarment for up to two years
A supplier making a false declaration can be debarred for up to two years, along with other action permitted by law.
Complaints from rival bidders
Here is the catch: a rival who lost by a small margin will look hard at your claim. Competing bidders can challenge it. Nodal ministries and procuring entities may charge a fee for such complaints.
Frequently asked questions
Is there an official Make in India certificate issued by the government?
No, the government does not issue a standalone Make in India certificate. In tenders, the term means your local content self-certificate under the Public Procurement (Preference to Make in India) Order, 2017, backed by an auditor’s or practising CA’s certificate when the procurement exceeds ₹10 crore. Be wary of paid “registrations” sold as a substitute. The paperwork that counts is what the tender asks for.
What is the difference between Class-I and Class-II local supplier?
A Class-I local supplier has local content of 50% or more; a Class-II local supplier has more than 20% but less than 50%. Only Class-I suppliers get purchase preference. Both can bid in procurements below ₹200 crore where no global tender enquiry is issued. A nodal ministry can raise these percentages for its items, so read each tender’s clause before you decide your class.
How is local content calculated?
Local content is the total value of the item offered, excluding net domestic indirect taxes, minus the value of imported content, shown as a percentage of the total value. Imported inputs count as imported content even when you buy them through an Indian dealer, so trace each component back to its origin. We build the calculation from your bill of materials and import documents, so every figure can be traced to an invoice.
Who must sign the local content certificate above ₹10 crore?
For procurements above ₹10 crore, a company needs a certificate from its statutory auditor or cost auditor. Bidders that are not companies need a certificate from a practising cost accountant or practising chartered accountant. Below ₹10 crore, the bidder’s own self-certificate is enough unless the tender says otherwise. Plan the auditor’s time early, because certifying needs your cost data.
Does the Make in India preference apply to small purchases?
No, procurements below ₹5 lakh are exempt from the Order. Above that, the Order applies to goods, services and works bought by the ministries, departments and public sector enterprises it covers. Nodal ministries may also notify item-specific rules. If you mainly supply low-value orders, check each purchase order for a local content clause.
Do I need a Make in India declaration on GeM?
Yes, in effect. GeM requires sellers to declare the country of origin for products, and bids on GeM are evaluated under the Order’s local content rules where they apply. Keep your local content workings ready for each product you list. We help you set up the declaration correctly along with your GeM seller profile.
What happens if my local content falls below the declared figure?
A false declaration breaches the Code of Integrity and can lead to debarment for up to two years. If your inputs change after the bid, for example because an Indian component is replaced with an imported one, raise it with the procuring entity rather than staying silent. Document every change in your costing. Recorded workings are your best defence in any verification.
Can Taxhint issue the local content certificate?
It depends on who you are. For a company bidder above ₹10 crore, the certificate must come from your statutory auditor or cost auditor, so we prepare the workings for them to verify. For other bidders, a practising chartered accountant can certify. We calculate, document and draft in every case, so the person who signs has a clean file.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
There is no government fee for a local content self-certificate.
Ready to begin?
Share the tender and your bill of materials, and we will tell you which class you qualify for and what the certificate needs.