Under the Public Procurement (Preference to Make in India) Order, government buyers give preference to suppliers whose goods, services or works have more local content.
Supplier classes
| Class | Local content |
|---|---|
| Class-I local supplier | 50% or more |
| Class-II local supplier | More than 20% but less than 50% |
| Non-local supplier | 20% or less |
Nodal ministries can set different minimum local content for specific items, so the tender's own clause decides.
Purchase preference
- Local suppliers get purchase preference over others.
- The margin of purchase preference is 20%: a local supplier's price may be up to 20% above L1 and still get preference, under the order's matching rules.
- For procurements with an estimated value below ₹200 crore, ordinarily only Class-I and Class-II local suppliers can bid.
What you need to do
- Work out your local content honestly, including value added in India.
- Give the declaration or certificate in the format the tender asks for.
- On GeM, set the local content correctly in your product listing.
A false local content declaration can lead to rejection, debarment and other action. Get your calculation checked if you are unsure.
Sources
SoftTender is a private consultancy. We are not affiliated with GeM, CPPP, NSIC or any Government department. Registration on official portals such as GeM is free; we charge only for our assistance service. We do not guarantee that any tender will be awarded.