Make in India preference in tenders comes from the Public Procurement (Preference to Make in India) Order, PPP-MII, 2017, which gives purchase preference to domestic suppliers based on local content. Suppliers are graded as Class-I (highest local content), Class-II, or Non-Local, and higher classes get priority.
The PPP-MII Order, issued by the Department for Promotion of Industry and Internal Trade (DPIIT), classifies suppliers by the local content in their goods or services. A Class-I local supplier has local content of 50% or more; a Class-II local supplier has local content of 20% or more but less than 50%; anyone below 20% is a Non-Local supplier. Nodal ministries notify local-content thresholds for specific product categories.
These classes drive who can bid and who wins. In many procurements, only Class-I and Class-II local suppliers are eligible, and Non-Local suppliers are excluded. Where a Non-Local or Class-II is otherwise L1, a Class-I supplier is typically given a purchase preference, commonly a margin of 20%, meaning the Class-I bidder can match the L1 price to secure a share of the order.
The order works together with the restriction on global tender enquiry. Under GFR amendments, global tenders are disallowed for procurements up to a notified value (a measure to protect domestic industry), which further channels business toward local suppliers. For a domestic manufacturer, correctly claiming Class-I status can be the single biggest eligibility advantage in a tender.
Local-content claims must be backed by a self-certification, and above certain value thresholds by a certificate from a statutory auditor or cost accountant. False local-content claims carry serious consequences, including debarment. Because local content is assessed at the product/OEM level, resellers must obtain the correct declaration from the OEM whose product they quote.
On GeM and CPPP, buyers apply the Make-in-India filter at bid creation, so a tender may be restricted to Class-I only, or Class-I and Class-II. Keep your local-content certificates, category-wise, ready and updated, because the moment to prove Class-I status is at bid submission, and a missing or stale certificate can push you into a lower class and out of contention.
BidShakti reads each tender for Make-in-India conditions, whether it is restricted to Class-I, whether Class-II is allowed, and whether a purchase preference applies, and matches it against your declared local-content status in the go/no-go. The bid-pack then lists exactly which local-content certificate or OEM declaration you must attach, so you claim the preference you are entitled to instead of being downgraded on a technicality.
Frequently asked questions
What is the Make in India preference in tenders?
It is a purchase preference under the PPP-MII Order 2017 that favours domestic suppliers based on their local content, graded as Class-I, Class-II or Non-Local.
What is the difference between Class-I and Class-II local suppliers?
Class-I has local content of 50% or more; Class-II has 20% or more but less than 50%. Class-I generally gets priority and purchase preference.
What is purchase preference under Make in India?
If a lower-class or non-local bidder is L1, a Class-I supplier can usually match that price (commonly within a 20% margin) to win a share of the order.
How is local content proved in a tender?
Through a self-certification, and above certain values a certificate from a statutory auditor or cost accountant; false claims can lead to debarment.
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