Make in India is a certification for local OEMs that MSMEs require to ensure that their products are predominantly manufactured in India only. MSMEs are expected to comply with this requirement in light of recent efforts to encourage domestic manufacturing and strengthen the Indian industrial complex.

Classification of MII local suppliers as per DPIIT

Classes of Local suppliers based on local content as per the revised PPP-MII Order dated 04.06.2020 issued by the Department for Promotion of Industry and Internal Trade (DPIIT) are as under.

Local content is described as: "local content is the percentage of Indian materials used for manufacturing a particular product".

Class-1 local supplier: A vendor or service provider whose goods, services, or works submitted for procurement have a local content percentage equal to, or greater than 50% will be considered a class-1 local supplier or vendor.

Class-2 local supplier: A vendor or services provider whose items, services, or works are available for procurement has a local content greater than 20% but less than 50%.

Non-local Supplier: A supplier or service provider whose goods, services, or works are being offered for procurement has a local content that is less than or equivalent to 20% of the total.

As per the revised released circular no, P-45021/2/2017-PP (BE-II), Only 'Class-I local suppliers' and 'Class-II local suppliers' shall be eligible to bid in the procurement of all goods, and services, or works, with an estimated value of purchases less than Rs. 200 crores.

Therefore it is now obligatory for OEMs to produce an undertaking of MII to participate in bidding in Government tender and public procurements such as on the GeM portal or NICSI.