Make in India (Public Procurement Order)

The Make in India order, formally the Public Procurement (Preference to Make in India) order or PPP-MII, gives purchase preference in government tenders to suppliers whose goods carry enough local content. The more a product is made in India, the better its standing in the bid.

What is Make in India (Public Procurement Order)?

PPP-MII sorts suppliers by how much of a product's value is added inside India. A supplier with 50% or more local content is a "Class-I local supplier" and gets purchase preference. A supplier with 20% to 50% local content is a "Class-II local supplier" and can bid but gets no preference. Goods not manufactured in India at all get no preference. For procurement up to Rs 200 crore, only Class-I suppliers are usually allowed when there is enough competition among them.

Bidders declare their local content through self-certification in the tender. This declaration is taken seriously: a false claim can lead to a three-year ban from government procurement. The policy applies across many central buying channels, so you will see it on goods tenders posted on gem and on works and supply notices published as a nit. For background on how to position your products, see our Make in India procurement guide.

Why it matters for bidders

Local content is not just a tick-box. It can decide who is even allowed to bid and who wins when prices are close. If you are a Class-I supplier, you should make sure your local content claim is documented and defensible, because the purchase preference can be the difference between L1 and losing. If your product depends on imports, plan how to raise domestic value addition before the next tender cycle.

Example

A procuring entity floats a Rs 50 crore tender for electrical equipment. Two firms qualify on price. Firm A self-certifies 55% local content (Class-I), and Firm B certifies 35% (Class-II). Under PPP-MII, the procuring entity gives purchase preference to Firm A as a Class-I local supplier. Firm B can take part but does not get the preference, even after paying its emd and meeting all other conditions.

Frequently Asked Questions

What is the difference between a Class-I and Class-II local supplier?

A Class-I local supplier has 50% or more local content in its goods and gets purchase preference in tenders. A Class-II local supplier has between 20% and 50% local content. Class-II suppliers can bid but receive no preference.

Do I have to prove my local content?

Local content is declared through self-certification when you submit your bid. You do not always upload proof up front, but you must be able to back up the figure. A false declaration can result in a three-year ban from government procurement.

Are foreign or non-local suppliers banned?

Not always banned, but they are at a disadvantage. Goods not manufactured in India get no purchase preference. For procurement up to Rs 200 crore, often only Class-I suppliers are allowed when there is sufficient competition among them.

How does PPP-MII affect the lowest-price (L1) outcome?

When qualifying prices are close, purchase preference can move the award toward a Class-I local supplier even if it is not the absolute lowest quote. This is why a strong, accurate local content position matters as much as price in many tenders.

Where does the Make in India preference apply?

It applies across central government procurement channels, including goods tenders on GeM and supply and works notices published as NITs. Always read the specific tender to confirm whether Make in India compliance is required and what minimum local content percentage applies.