What the Make in India order does
The Public Procurement (Preference to Make in India) Order requires government buyers to give preference to goods, services and works with higher local content. On GeM, this shows up in almost every bid: the bid states whether MII purchase preference applies and what minimum local content is required, and every seller declares its local content when bidding.
Local content and the supplier classes
Local content is the value added in India — the item's total value minus the value of imported content, as a percentage. Under the general order, 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%; anything at 20% or below is non-local. Ministries can notify higher thresholds for particular items, so the figures in the bid are the ones that apply to you.
How preference works in a bid
Where purchase preference applies and the lowest bidder is not a Class-I local supplier, a Class-I local supplier whose price is within the margin of purchase preference stated in the rules can be invited to match L1 and win the contract (or part of it, depending on the item and bid). Some bids go further and allow only Class-I and Class-II local suppliers to participate. The exact mechanism and margin are written in the bid and the order — read them for each bid rather than assuming.
Declaring local content correctly
- ✓Work out local content from your actual cost sheet: imported components, materials and services count as imported content
- ✓Keep the working, invoices and bill of materials on file — buyers can ask for verification
- ✓Above certain procurement values, the order requires a certificate from the statutory auditor or cost auditor (for companies) or a practising CA/cost accountant; the bid states what to upload
- ✓Resellers declare local content of the product they offer, based on the OEM's declaration and certificate
- ✓If you mention the place where local value addition happens, keep it accurate
Wrong declarations have consequences
A false local content declaration is treated seriously under the order and GeM's terms — it can lead to disqualification, forfeiture of security and debarment from future procurement. When in doubt, declare conservatively and get the calculation checked.
Related rules you may see in bids
Bids may also carry the condition that bidders from countries sharing a land border with India can participate only if registered with the competent authority, and some may mention Global Tender Enquiry (GTE) rules. These are separate from local content but appear in the same part of the bid; read them together.
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Frequently asked questions
What is a Class-I local supplier?
Under the general Make in India procurement order, a supplier whose goods, services or works have local content of 50% or more. Ministries can notify higher thresholds for specific items; the bid states what applies.
Do I need a certificate for local content on GeM?
You declare local content in every bid. For higher-value procurement the order requires a certificate from an auditor or practising accountant; the bid states what must be uploaded.
What happens if local content is declared wrongly?
It can lead to disqualification, forfeiture of security and debarment. Declare from your actual cost sheet and keep the working on file.
Does Make in India preference apply to services?
Yes, the order covers goods, services and works. The bid states whether preference applies and the minimum local content required.
Related guides
Rules change. Always confirm the details in the bid document and on gem.gov.in before you bid. · Updated 2026-11-02
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