Make in India Certificate for Tenders
If you are participating in Government tenders in India, one of the most critical compliance requirements today is the Make in India Certificate or Local Content Certificate. Whether you are bidding with PSU tenders, Ministry tenders, defence contracts, railways, energy projects, or public sector banks, you may be required to submit a valid certification under the Public Procurement (Preference to Make in India) framework.
At YKG Global, we specialize in issuing, structuring, reviewing, and defending Make in India certifications for companies across manufacturing, IT services, software development, EPC, defence, renewable energy, and infrastructure sectors.
This guide explains everything you need to know about:
1. What is a Make in India Certificate
2. Why is the Make in India Certificate Important for Government Tenders
3. How local content is calculated ?
4. Classification of Suppliers under Make in India
5. Common mistakes companies make
6. Make in India Certificate for Global Companies
1. What is a Make in India Certificate?
A Make in India Certificate is issued under the Public Procurement (Preference to Make in India) Order, 2017, notified by the Department for Promotion of Industry and Internal Trade (DPIIT), Government of India.
This order mandates that government departments, PSUs, and other procuring entities give preference to suppliers offering higher local content in goods and services.
The certification confirms:
- The percentage of Local Content (LC%)
- The classification of the supplier
- Compliance with the applicable procurement order
- Eligibility for tender participation
2. Why is the Make in India Certificate Important for Government Tenders?
Today, most Government tenders require bidders to declare their local content percentage.
If your company fails to:
- Submit proper certification
- Calculate local content correctly
- Follow the relevant sector-specific notification
- Get the certificate issued by the appropriate authority
Your bid can be rejected at technical evaluation stage.
In high-value tenders (₹10 crore, ₹50 crore, ₹100+ crore), incorrect certification can also result in:
- Blacklisting
- Bid disqualification
- Financial penalties
- Legal disputes
That is why a professionally prepared Make in India certificate is not just compliance it is strategic.
3. How is it Calculated?
Local Content refers to the value added within India.
The standard formula generally followed is:
Local Content (%) = (Value added in India ÷ Total value of item) × 100
However, calculation is not always simple.
Depending on whether you are:
- A manufacturer
- A trader
- An EPC contractor
- A software development center
- A captive R&D entity
- A service provider
The calculation methodology may vary.
For example:
- Imported raw materials reduce local content
- Royalty payments may need exclusion
- Foreign design or IP ownership may impact eligibility
- Transfer pricing adjustments can affect value addition
Many companies make the mistake of applying a generic formula without reviewing the specific DPIIT notification or sectoral guidelines.
4. Classification of Suppliers under Make in India
Under the Public Procurement Order, suppliers are classified as:
1. Class I Local Supplier – Local Content ≥ 50%
2. Class II Local Supplier – Local Content ≥ 20% and < 50%
3. Non-Local Supplier – Local Content < 20%
In many tenders:
- Only Class I suppliers are eligible
- Preference is given to higher LC%
- Price matching benefits are allowed
Understanding your classification is crucial before bidding.
5. Common Mistakes Companies Make
After handling multiple Make in India certifications across sectors, we have observed the following errors:
1. Incorrect calculation of local content
2. Ignoring sector-specific notifications
3. Not reviewing bill of materials properly
4. Including ineligible components
5. Not documenting working papers
6. No audit trail maintained
7. Using outdated government notifications
8. Issuing certificate without reviewing tender conditions
Improper certification can collapse under scrutiny.
6. Make in India Certificate for Global Companies
Many global companies operating in India face confusion.
If your company:
- Is a captive development center
- Provides R&D services
- Owns or licenses IP from foreign parent
- Is a global software development company
Then calculating local content requires deep understanding of:
- Cost allocation
- IP ownership structure
- Licensing terms
- Revenue recognition
Such cases require structured analysis not generic templates.
Documentation Required for Make in India Certificate
Typically, you will need:
- Detailed cost sheets
- Bill of materials
- Vendor invoices
- Import documentation
- Other Documents as needed
Without documentation, certification cannot be defended.
What Happens If Certificate is Challenged?
Competitors frequently challenge Make in India claims.
If challenged, you may be required to:
- Submit cost workings
- Justify calculations
- Provide auditor certification
- Appear before procurement authority
Improper documentation can lead to cancellation of award or legal disputes.
How YKG Global Can Help You
- Participating in a Government tender
- Unsure about your Local Content percentage
- A foreign company operating in India
- A PSU vendor
- A startup bidding for public procurement
- A software development center
- An EPC contractor
We can assist you with:
- Local Content computation
- Review of tender eligibility
- Certification as per required authority
- Risk assessment before bid submission
- Documentation support
- Compliance audit
The Make in India Certificate for Tenders is no longer a simple declaration. It is a compliance-driven, legally sensitive, and strategically important requirement.
At YKG Global, we combine technical expertise, regulatory understanding, and real-world tender experience to ensure your Make in India compliance is accurate, defendable, and strategically aligned with your business goals.
Let us help you bid confidently and win compliantly.
Call us or fill out our contact form to schedule a consultation today.
📧 Email: Rishi@ykgglobal.com
🌐 Website: www.ykgglobal.com
📱 Call/WhatsApp: +91 76782 77665
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