Make in India and local content rules in tenders

6 min read · Last reviewed 14 August 2026

The Public Procurement (Preference to Make in India) Order — PPP-MII, issued by DPIIT — classifies bidders by the percentage of local content in what they supply, and gives purchase preference to Class I local suppliers, who meet the highest local content threshold.

Two distinct policies get conflated under 'Make in India' in tender documents, and they work very differently. One is a preference — it improves your position at evaluation. The other is a restriction — it decides whether you may participate at all. Read them separately.

The preference: PPP-MII

The Public Procurement (Preference to Make in India) Order sorts bidders into classes by local content, meaning the value added within India as a share of the total value of what is supplied:

• Class I local supplier — local content at or above the higher threshold set in the order. Receives purchase preference.
• Class II local supplier — local content above the lower threshold but below the Class I threshold. Limited standing, ranked behind Class I.
• Non-local supplier — local content below the lower threshold. May be excluded entirely from tenders reserved for local suppliers.

Nodal ministries may set higher thresholds and their own definitions for specific product categories, so the operative threshold for your goods is the one in the tender document read with the relevant notification — not a single national number. Local content is normally self-certified, with a statutory auditor's or cost accountant's certificate required above a stated value, and false certification carries consequences including debarment.

The restriction: land border sharing

Separately from local content, GFR 2017 Rule 144(xi), read with the Department of Expenditure order dated 23 July 2020, restricts bidders from countries sharing a land border with India. Such a bidder is eligible only if registered with the Competent Authority — the Registration Committee constituted by DPIIT.

This is a qualification gate, not a preference. It commonly reaches Indian bidders indirectly: tenders require a declaration about the bidder's own status and, in many cases, about sub-contractors and the origin of the goods being supplied. A false declaration is a serious matter, so if you are reselling imported product, confirm the position before you sign.

What to do before bidding a tender with local content conditions

1. Identify which class you can certify for the specific goods or services in this tender.
2. Check whether the tender reserves participation or preference for a particular class.
3. Confirm the local content threshold applicable to your product category, not the generic one.
4. Arrange the auditor's or cost accountant's certificate if the value crosses the threshold that requires one.
5. Complete the land border declaration accurately, including for sub-contractors and supply origin.

Key takeaways

• PPP-MII is a preference by local content class; the land border rule is a participation gate.
• Class I gets purchase preference; non-local suppliers can be excluded outright.
• Thresholds vary by product category — use the one in the tender, not a remembered figure.
• Local content is self-certified, with an auditor's certificate above a stated value.
• Land border declarations extend to sub-contractors and to where the goods come from.

Frequently asked questions

What is the Make in India policy in government tenders?

The Public Procurement (Preference to Make in India) Order, issued by DPIIT, gives purchase preference in government tenders to suppliers with higher local content. Bidders are classified as Class I local suppliers, Class II local suppliers or non-local suppliers based on the percentage of value added in India, and tenders may reserve participation or preference for a class.

What is a Class I local supplier?

A Class I local supplier is a bidder whose goods or services meet or exceed the higher local content threshold set under the PPP-MII order. Class I suppliers receive purchase preference at evaluation, and some tenders are reserved for them entirely. The applicable threshold can be set higher for specific product categories by the nodal ministry.

What is the land border restriction in Indian government tenders?

Under GFR 2017 Rule 144(xi), read with the Department of Expenditure order dated 23 July 2020, a bidder from a country sharing a land border with India is eligible to bid only if registered with the Competent Authority — the Registration Committee constituted by DPIIT. Tenders require a declaration on this point, often covering sub-contractors and the origin of supplied goods as well as the bidder.

How is local content certified in a tender?

Local content is self-certified by the bidder in the format the tender prescribes. Above a stated value the certification must be supported by a certificate from a statutory auditor or a cost accountant. False certification can lead to action including debarment from future procurement.

References

• Public Procurement (Preference to Make in India) Order — DPIIT PPP-MII
• GFR 2017 Rule 144(xi); DoE Order dated 23-07-2020 (land border sharing)